Net capital losses can be carried forward or back, but can only be deducted to the extent of net taxable capital gains in the carry back or carry forward year.

Question

Quizplus · Accepted Answer

This is true according to the tax laws in many countries, including the United States. Net capital losses can be carried forward for a certain number of years (usually up to 7 or 10 years) to offset future capital gains. They can also be carried back to offset capital gains in the previous year. However, the deduction is limited to the amount of net taxable capital gains in the carry forward or carry back year.

Net Capital Losses Can Be Carried Forward or Back, but Can