[Chloe]

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?

[monikernc]

The Corp used $3000 in the current year and carried to 3 years back $25000 leaving $410k to carry forward.

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[Chloe]

Thank you for your help!

As far as I know, only individuals can deduct 3000 from capital loss.
From your answer, would you please explain why the corporation used 3000 and is carrying back 25000?

[Author]

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