Which of the following statements regarding capital gains and losses is false?
A)In terms of tax treatment, corporations generally prefer capital gains to ordinary income.
B)Like individuals, corporations can deduct $3,000 of net capital losses in a given year.
C)C corporations can carry back net capital losses three years and they can carry them forward for five years.
D)Corporations must apply capital loss carrybacks and carryovers in a particular order.

Question

Quizplus · Accepted Answer

Corporations do not have the same $3,000 deduction limit for net capital losses that individuals do. Instead, corporations can only use capital losses to offset capital gains. If their capital losses exceed their capital gains, they cannot deduct the excess from other types of income as individuals can.

Which of the Following Statements Regarding Capital Gains and Losses