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How to write off C Corp Business Loss in Schedule D?

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Turtle43
Level 1

Individual Taxpayer owned a C Corp for 3 years and business did not take off and he closed the  C Corp (dissolved properly with the State of CA).  The state said he paid the final $800 Min Franchise Tax for final year 2015, did not file the final tax return and he filed it during 2018 when he got the notice of missing tax return from the State in early 2018.  

The total accumulated loss was $7K.  Can the taxpayer take the accumulated loss of $7K as a Long Term Capital Loss in his Schedule D in 2018 tax return?  The Tax ID will be included in the description.

Thanks for your help.  Let me know if I need to provide some info. I have read some questions in this forum but did not answer my specific situation.

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All-Star

When did your client file his 2015 individual tax return?

It sounds like he has a capital loss on his basis in the stock in the C Corp for 2015. This may not be the $7,000 you reference.


The more I know, the more I don't know.

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All-Star
Did the C Corp have an extension to file the 2015 return?
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Turtle43
Level 1
Client did not file extension for 2015 Tax Return. He did pay the $800 for 2015 and decided to dissolve the business during 2015 and forgot about the tax return requirement until CA asked for the 2015 Tax Return to close out the 2015 Payment of $800. Thank you.   
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All-Star

When did your client file his 2015 individual tax return?

It sounds like he has a capital loss on his basis in the stock in the C Corp for 2015. This may not be the $7,000 you reference.


The more I know, the more I don't know.

View solution in original post

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Turtle43
Level 1
2015 Individual Tax Return was filed in 2016 (like normal).  So the Capital Loss should have been included in 2015 tax return and now too late to claim loss since we have past the deadline to amend 2015?
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All-Star
Yres. But if some would be carried over you can still use the carryover.

The more I know, the more I don't know.
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