Net capital loss carryovers, but not carrybacks, are deductible against capital gains in determining a corporation's net operating loss for the year.

Question

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Net capital loss carryovers can be used to offset capital gains in the current year, but cannot be carried back to prior years. They can only be carried forward to future years. In determining a corporation's net operating loss for the year, net capital loss carryovers can be used to offset any capital gains, which can reduce the overall taxable income of the corporation.

Net Capital Loss Carryovers, but Not Carrybacks, Are Deductible Against