Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members (Page 2 of 4) in pdf

Form 6CL Instructions

■ Lines 5 through 7. Available Capital Loss Carryo-

Example for Line 2:

vers – Compute the available non-sharable and shar-

Combined Group STU consists of Member S, Member

able capital loss carryovers using the worksheets in

T, and Member U. In the taxable year 2015, S, T, and

Parts II, III, and IV. See the instructions for Parts II, III,

U have the following capital gain/loss items includable

and IV.

in the group’s aggregate computation:

■ Line 8. Net Capital Gain from Separate Entity

__S__

__T__

__U__

Items – The amount on line 8 represents the total net

Long term

capital gain you must include on Form N on the appro-

capital gain

$5,000

priate line or lines corresponding to the type of income.

Short term

If the net capital gain is attributable to more than one

capital loss

($12,000)

($6,000)

type of income on Form N, allocate the net capital gain

to the types of income which generated the net capital

Section

gain, in proportion to the total capital gain attributable

1231

to each type of income.

gain/loss

($500)

$2,000

$1,500

NOTE: If the net capital gain on line 8 is attributable

When S, T, and U aggregate each class of capital

to amounts reportable in Part II of Form N, include

gains and losses and section 1231 gains and losses,

the net capital gain in the pre-apportioned amount.

Group STU has a suspended net capital loss of

($10,000) and therefore enters $0 on Form 6, Part I,

line 30.

If you have an amount on line 8, note the following or-

dering rules regarding your capital loss carryovers:

However, if S, T, and U’s capital gains and losses and

section 1231 gains and losses are netted for each



The current year net capital loss reported on line 2

member separately, S would have a net capital loss of

is considered used before the capital loss carryo-

($12,000) (its section 1231 loss would be treated as

vers reported on line 7.

ordinary under section 1231(a)(2) of the Internal Rev-



If capital loss carryovers from line 7 were used,

enue Code), T would have a net capital loss of

they are considered used in the order incurred. If

($4,000), and U would have a net capital gain of

both sharable and non-sharable carryovers were

$6,500.

incurred in the same taxable year, the amount

Since only S and T would have a net capital loss if their

used from each type is determined on a pro rata

capital gain/loss items included in the aggregation

basis according to each type available from that

were netted on a separate entity basis, only S and T

year.

complete line 2 of Form 6CL.

■

Of Group STU’s ($10,000) suspended net capital loss,

Line 9a. Available Carryovers After Applying

Capital Gain from Separate Entity Items – If you re-

you would allocate ($7,500) to S (= ($10,000) x

($12,000)/($16,000)) and ($2,500) to T (= ($10,000) x

ported current year net capital gain from separate en-

($4,000)/($16,000)).

tity items on line 3, subtract that amount from the avail-

able capital loss carryovers you reported on line 7.

Therefore, on line 2 of Member S’s Form 6CL, you

Line 9a represents the total remaining capital loss car-

would enter $7,500, and on line 2 of Member T’s Form

ryovers after applying them against current year net

6CL, you would enter $2,500. Note that these loss

capital gains from separate entity items.

amounts should be entered as positive numbers.

■

Line 9b. Available Carryovers After Applying

■ Lines 3 and 4. Current Year Net Capital Gain or

Capital Loss from Separate Entity Items – If you re-

Loss from Separate Entity Items – If the corporation

ported current year net capital loss from separate en-

has capital gain/loss items that are reportable on Form

tity items on line 4, add that amount to the available

N (and thus couldn’t be included in the aggregate com-

capital loss carryovers you reported in line 7. Line 9b

putation on Form 6, Part I, line 30), net those amounts

represents the total available capital loss carryovers,

separately, without regard to capital loss carryovers.

including current year net capital losses from separate

The capital loss carryovers will be accounted for later

entity items.

on lines 8 and 9.

■

Line 9c. Additional Capital Loss Applied – The

If the result is a net capital gain, enter the amount of

that net capital gain on line 3. If the result is a net cap-

lesser of line 9a and line 1 represents the total amount

ital loss, enter the amount of that net capital loss on

of non-sharable and sharable capital loss amounts to

be applied against the corporation’s share of the com-

line 4 as a positive number.

bined group’s net capital gain. If this amount includes

IC-544

Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members Page 2

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