Which of the following statements is true?
A)Shareholders in a C corporation can use C corporation losses to offset shareholder income from other sources.
B)C corporation losses remain in the C corporation and can offset capital gain income from other years.
C)C corporation shareholders are taxed based on their proportionate share of income.
D)Distributions of C corporation income are not taxable.

Question

Quizplus · Accepted Answer

C corporation losses are not passed through to shareholders but can be carried forward or back to offset the corporation's future or past taxable income, respectively.

Which of the Following Statements Is True