A cash liquidating distribution are funds distributed to a shareholder when a corporation is partially or fully liquidated. The distribution represents a return of an investor’s capital, so it’s not taxable to the extent of basis in the stock. If the distribution exceeds basis, it is a capital gain (long-term or short-term depending upon how long the stock has been held).
A business loss that exceeds current income may be carried back against income of prior years and carried forward as a deduction from future income until eliminated.