Tax Drill - Net Capital Loss (NCL) Complete the statements below regarding a net capital loss. For noncorporate taxpayers, an net capital loss (NCL) is deductible from gross income to the extent of $ per tax year. If the NCL includes both long-term and short-term capital loss, the capital loss is counted first toward the annual limitation. Noncorporate taxpayers are allowed to carry over unused capital losses capital losses retain their character when carried over