New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter A - Business Corporation Franchise Tax › Part 3 - COMPUTATION OF TAX › Subpart 3-7 - CAPITAL LOSSES › Section 3-7.5 - Application of New York net capital losses

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Except as otherwise provided in this
					 Subpart, the amount of New York net business capital loss and the amount of New
					 York net investment capital loss must be carried back to each of the 3 taxable
					 years immediately preceding the taxable year of each such loss and, to the
					 extent that any capital loss remains, must be carried forward to the 5 taxable
					 years immediately succeeding the taxable year of each such loss, but only to
					 the extent that the amount of New York net business capital loss or New York
					 net investment capital loss does not increase or produce a net operating loss
					 for New York State purposes. New York net business capital loss must be carried
					 back or forward in accordance with this Subpart to offset only New York
					 business capital gains in other taxable years, for New York State purposes. New
					 York net investment capital loss must be carried back and forward in accordance
					 with this Subpart to offset only New York investment capital gains in other
					 taxable years, for New York State purposes.
(b) A New York net business capital loss or
					 New York net investment capital loss cannot be carried back to a taxable year
					 beginning before January 1, 2015.
(c) Except as provided in subdivision (b) of
					 this section, a New York net business capital loss or New York net investment
					 capital loss is carried first to the earliest of the 3 taxable years
					 immediately preceding the tax year in which the loss was sustained. If such net
					 capital loss is not entirely used in that tax year, the remaining amount is
					 then carried to the second taxable year preceding the loss year, and any amount
					 thereafter remaining is carried to the first taxable year immediately preceding
					 the tax year in which the net capital loss was sustained. Any unused amount
					 after the application of the carryback rules is then carried forward to the
					 first 5 taxable years immediately succeeding the loss year. Such net capital
					 loss is carried forward first to the taxable year immediately following the
					 loss year and then to the next immediately succeeding taxable year or years
					 until the loss is used up or the fifth taxable year following the loss year,
					 whichever comes first. Any unused capital loss carryforward is forfeited after
					 the fifth taxable year following the loss year.
(d) For purposes of determining the number of
					 tax years to which a capital loss may be carried back or forward, the following
					 years are counted:
(1) a New York filing
					 year;
(2) a New York non-filing
					 year;
(3) a New York S filing
					 year;
(4) a non-captive REIT filing
					 year;
(5) a non-captive RIC filing
					 year; and
(6) a non-combinable
					 captive insurance filing year.