REG 2021 Released Question 2 – please help!

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    Chloe
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    From the most recent 2021 RQ,

    A C corporation incurred $438,000 capital loss in year 4 and has the following tax information. What amount of capital loss is available for
    carryover to future tax years?
    Y1 Y2 Y3 Y4
    Capital gain(loss) 0 $21,000 $11,000 ($438,000)
    Taxable gain(loss) 25000 17000 31000 750,000

    —> The answer is $410,000. Can someone please explain why 410,000 is a carryforward capital loss?

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