1120-US: Capital Loss Carryover (FAQ)

Alerts and notices

Question

How do I update the history of capital gains and losses of the corporation to reflect the amount currently available?

Answer

UltraTax CS/1120 determines if any amounts are eligible for loss carryover or carryback by netting the Prior (Gain Offset) Or Loss Utilized amounts with the Net Capital Gain (Net Capital Loss) amounts for each of the preceding tax years.

  • Enter the amount of capital loss utilized in a prior year as a positive number.

    For example, a net capital loss was generated in the 2012 tax year in the amount of $10,000. $4,500 of the loss was carried back, $2,500 was utilized in the 2013 tax year, and nothing has been utilized since. In this example, a total of $7,000 ($4,500 carried back to previous years + $2,500 utilized in 2013) of the original $10,000 net capital loss has been utilized. Screen fields should appear as follows.

    Preceding Tax Year Net Capital Gain / (Loss) Prior (Gain Offset) or Loss Utilized
    2012 (10,000) 7,000
    2013 2,500 (2,500)
    2014
    2015
    2016
  • Enter the amount of the capital gain utilized by carrybacks as a negative number.

    For example, the net capital gain for the 2014 tax year was $8,000. A capital loss in the 2015 tax year was carried back in the amount of $1,000. The screen fields would appear as indicated in the following table.

    Preceding Tax Year Net Capital Gain / (Loss) Prior (Gain Offset) or Loss Utilized
    2014 8,000 (1,000)
    2015 (1,000) 1,000
    2016