G.S. 105-131.4
§ 105-131.4. Carryforwards; carrybacks; loss limitation.
(a)Carryforwards and carrybacks to and from an S…#
(a) Carryforwards and carrybacks to and from an S Corporation shall be restricted in the manner provided in section 1371(b) of the Code.
(b)The aggregate amount of losses or deductions of an S…#
(b) The aggregate amount of losses or deductions of an S Corporation taken into account by a shareholder pursuant to G.S. 105-131.1(b) may not exceed the combined adjusted bases, determined in accordance with G.S. 105-131.3, of the shareholder in the stock and indebtedness of the S Corporation.
(c)Any loss or deduction that is disallowed for a taxable…#
(c) Any loss or deduction that is disallowed for a taxable period pursuant to subsection (b) of this section shall be treated as incurred by the corporation in the succeeding taxable period with respect to that shareholder.