Net capital losses incurred by individuals and corporation are treated equally in that net losses cannot exceed $3,000 in any given year.

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For individuals, the IRS limits the deduction of net capital losses to $3,000 ($1,500 if married filing separately) per year against ordinary income. Corporations, however, do not have a specific dollar limit but can carry back capital losses to the preceding three years and forward to the following five years to offset capital gains, but they cannot deduct capital losses against ordinary income like individuals can.

Net Capital Losses Incurred by Individuals and Corporation Are Treated