Bear Corporation has net short-term capital gains of $25,000 and net long-term capital losses of $170,000 during 2008.Bear Corporation had taxable income from other sources of $700,000.Prior years' transactions included the following:
Compute the amount of Bear's capital loss carryover to 2009.

A)$0.
B)$30,000.
C)$85,000.
D)$145,000.
E)None of the above.

Question

Bear Corporation has net short-term capital gains of $25,000 and net long-term capital losses of $170,000 during 2008.Bear Corporation had taxable income from other sources of $700,000.Prior years' transactions included the following:
Compute the amount of Bear's capital loss carryover to 2009.

A)$0. 
B)$30,000. 
C)$85,000. 
D)$145,000. 
E)None of the above.

Quizplus · Accepted Answer

11ea7f05_2e4c_7d47_92e1_052143f0ec0d_TB4123_00 
The net capital loss of $145,000 is not deductible on the 2008 return,but must be carried back to the three preceding years,applying it to 2005,2006,and 2007,in that order.The net capital loss is carried back or forward as short-term capital loss.
 11ea7f05_2e4c_7d48_92e1_cf17c71278f0_TB4123_00 Bear's capital loss carryover is $85,000 ($145,000 - $60,000),which may be carried over to 2009,2010,2011,2012,and 2013,in that order.

Bear Corporation Has Net Short-Term Capital Gains of $25,000 and Net