1120 Schedule D

[miatax]

Since I don't do many of these 1120's, I figured I'd ask in this forum as I'm sure many here know the answer to this in a heartbeat.

C corp has capital losses. Can they be offset against ordinary income or are they strictly to be offset against future capital gains?

Thank you.

[jainen]

>>I don't do many of these 1120's<<

In my opinion, that's why you need to read the instructions. The front page of the instructions to the form named in the subject line of this thread says, "Capital losses are allowed only to the extent of capital gains. A net capital loss is carried back 3 years and forward up to 5 years as a short-term capital loss."

http://www.irs.gov/pub/irs-pdf/i1120sd.pdf

[OldJack]

>>I don't do many of these 1120's<<

In my opinion, that's why you need to read the instructions. The front page of the instructions to the form named in the subject line of this thread says, "Capital losses are allowed only to the extent of capital gains. A net capital loss is carried back 3 years and forward up to 5 years as a short-term capital loss."

http://www.irs.gov/pub/irs-pdf/i1120sd.pdf

And capital loss carryback or forward are still not netted with future ordinary income.