Capital loss limits apply to AMTI

If securities that are capital assets become worthless during a tax year, the losses are capital losses, as if a sale or exchange of the securities occurred on the last day of that tax year. Sec. 1212(b) allows non-corporate taxpayers to carry forward unrecognized capital losses to subsequent tax ye...

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Bibliographic Details
Published in:The Tax Adviser 2006-07, Vol.37 (7), p.436
Main Author: Merlo, Robert J
Format: Magazinearticle
Language:English
Subjects:
Alternative minimum tax
Capital assets
Capital gains
Capital losses
Carryback
Carryback losses
Laws, regulations and rules
Loss deductions
Minimum tax
Net operating losses
Taxable income
Taxation
Taxpayers
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Summary:If securities that are capital assets become worthless during a tax year, the losses are capital losses, as if a sale or exchange of the securities occurred on the last day of that tax year. Sec. 1212(b) allows non-corporate taxpayers to carry forward unrecognized capital losses to subsequent tax years, but it does not allow them to carry back unrecognized capital losses to prior tax years. No statute, regulation or other published guidance purports to change the treatment of capital losses for alternative minimum tax purposes. A taxpayer can carry back a net operating loss to the two tax years preceding the loss and then forward to each of the 20 tax years following the loss.
ISSN:0039-9957