(1) If a corporation has a net capital loss for any taxable year (hereinafter referred to as the “loss year”), the amount shall be:
(a) A capital loss carryback to each of the three (3) taxable years preceding the loss year;
(b) A capital loss carryover to each of the five (5) taxable years succeeding the loss year.
(2) If a corporation has a loss year, the amount shall be treated as a short-term capital loss in each such taxable year. The entire amount of the net capital loss for any taxable year shall be carried to the earliest of the taxable years to which the loss may be carried, and the portion of the loss which shall be carried to each of the other taxable years to which the loss may be carried shall be the excess, if any, of the loss over the total of the capital gain net income for each of the prior taxable years to which the loss may be carried. For purposes of the preceding sentence, the capital gain net income for any such prior taxable year shall be computed without regard to the net capital loss for the loss year or for any taxable year thereafter.
(3)
(a) If a taxpayer other than a corporation has a net capital loss for any taxable year:
(i) The excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and
(ii) The excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.
(b) For purposes of determining the excess referred to in subsection (3)(a)(i) and (ii) of this section, there shall be treated as a short-term capital gain in the taxable year an amount equal to the lesser of:
(i) The amount allowed for the taxable year under Section 27-7-95, subsection (2)(a) or (b), or
(ii) The adjusted taxable income for such taxable year.
(c) For purposes of subsection (3)(b) of this section, the term “adjusted taxable income” means taxable income increased by the sum of:
(i) The amount allowed for the taxable year under Section 27-7-95, subsection (2)(a) or (b), and
(ii) The deduction allowed for such year.
For the purposes of the preceding sentence, any excess of the deductions allowed for the taxable year over the gross income for such year shall be taken into account as negative taxable income.
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