Tax attributes affected; order of reduction
Except as provided in paragraph (5), the reduction referred to in paragraph (1) shall be made in the following tax attributes in the following order:
(A) NOL
(A)NOL#
Any net operating loss for the taxable year of the discharge, and any net operating loss carryover to such taxable year.
(B)General business credit#
Any carryover to or from the taxable year of a discharge of an amount for purposes for determining the amount allowable as a credit under section 38 (relating to general business credit).
(C)Minimum tax credit#
The amount of the minimum tax credit available under section 53(b) as of the beginning of the taxable year immediately following the taxable year of the discharge.
(D)Capital loss carryovers#
Any net capital loss for the taxable year of the discharge, and any capital loss carryover to such taxable year under section 1212.
(E)Basis reduction#
(i) In general The basis of the property of the taxpayer.
(ii) Cross reference For provisions for making the reduction described in clause (i), see section 1017.
(E)(i)In general#
The basis of the property of the taxpayer.
(E)(ii)Cross reference#
For provisions for making the reduction described in clause (i), see section 1017.
(F)Passive activity loss and credit carryovers#
Any passive activity loss or credit carryover of the taxpayer under section 469(b) from the taxable year of the discharge.
(G)Foreign tax credit carryovers#
Any carryover to or from the taxable year of the discharge for purposes of determining the amount of the credit allowable under section 27.