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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