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Old 01-18-2007, 12:48 AM
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Net Losses Carryforward?

How are the net losses from operations treated in a C corporations. It looks like I might have a substantial loss this year, is there anything I can do to offset my gains from other activities??



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Old 01-18-2007, 10:27 AM
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Dear Chrisk,

Unfortunately, C corporation losses are not deductible at the individual level, and currently you can carryback these losses for last 3 years to recover past corporate taxes paid and then the balance of losses that are not absorbed by the prior year profits are carried forward for 5 years.

You can make an election to forego to carryback losses, and instead simply carryforward the losses for future years.

The corporation losses, in this case a C corporation is like a separate body, you cannot mingle your personal activities, other schedule C activities, capital gains from stock sales or sale of personal property. Hence, I am afraid, there is really nothing you can do, however, please consult your CPA to determine why you sustained these losses, and consider the merit of converting to an S Corporation.


Last edited by TaxGuru : 01-26-2007 at 01:35 AM.


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