§ 105-131.4. Carryforwards; carrybacks; loss limitation. - North Carolina Statutes - USA Laws Searching

Statutes > North Carolina Statutes > Chapter 105 - Taxation. > § 105-131.4. Carryforwards; carrybacks; loss limitation.

§ 105-131.4. Carryforwards; carrybacks; loss limitation.

§105‑131.4.  Carryforwards; carrybacks; loss limitation.

(a)        Carryforwards andcarrybacks to and from an S Corporation shall be restricted in the mannerprovided in section 1371(b) of the Code.

(b)        The aggregateamount of losses or deductions of an S Corporation taken into account by ashareholder pursuant to G.S. 105‑131.1(b) may not exceed the combinedadjusted bases, determined in accordance with G.S. 105‑131.3, of theshareholder in the stock and indebtedness of the S Corporation.

(c)        Any loss or deductionthat is disallowed for a taxable period pursuant to subsection (b) of thissection shall be treated as incurred by the corporation in the succeedingtaxable period with respect to that shareholder.

(d)        (1)        Anyloss or deduction that is disallowed pursuant to subsection (b) of this sectionfor the corporation's last taxable period as an S Corporation shall be treatedas incurred by the shareholder on the last day of any post‑terminationtransition period.

(2)        The aggregate amountof losses and deductions taken into account by a shareholder pursuant tosubdivision (1) of this subsection may not exceed the adjusted basis of theshareholder in the stock of the corporation (determined in accordance with G.S.105‑131.3 at the close of the last day of any post‑terminationtransition period and without regard to this subsection).

(e)        Expired. (1987(Reg. Sess., 1988), c. 1089, s. 1; 1989, c. 728, ss. 1.33, 1.35; 1989 (Reg.Sess., 1990), c. 984, s. 1; 1991, c. 752.)