If a corporation reports both a NLTCG and a NSTCG after netting all capital gains and losses,both the NLTCG and the NSTCG are subject to tax at rates applicable to ordinary income.

Question

Quizplus · Accepted Answer

Corporations do not benefit from preferential tax rates on capital gains. Both net long-term capital gains (NLTCG) and net short-term capital gains (NSTCG) are taxed at the corporation's ordinary income tax rate.

If a Corporation Reports Both a NLTCG and a NSTCG