(1) A capital loss, which may be subject to carryover provisions for federal purposes, must be deducted in the year incurred and not carried over for state purposes. A loss must have been sustained within the year in the sense that the full measure of the loss was ascertained within the year. The determination of the year in which a loss is sustained must be made on the basis of the facts as they exist at the close of the reporting period.

(2) No deduction is allowed for a loss which is not bona fide, for anticipated or contingent losses, or for any additions to reserves for such losses.