Capital losses of a corporation must be used to offset capital gains and net capital losses may not be deducted from the ordinary income of a corporation.

Question

Quizplus · Accepted Answer

Capital losses can only be used to offset capital gains, and any excess capital losses can be carried forward to future years to offset future capital gains. There is no provision for deducting net capital losses from ordinary income.

Capital Losses of a Corporation Must Be Used to Offset