Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-18-2007, 12:48 AM
Junior Member
 
Join Date: Jan 2007
Posts: 19
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??



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-18-2007, 10:27 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
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.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.