A loss generated when a company's tax deductions are greater than its taxable income is called a capital loss.

Name: A loss generated when a company's tax deductions are greater than its taxable income is called a capital loss.
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A loss generated when a company's tax deductions are greater than its taxable income is called a net operating loss, not a capital loss. Capital losses are specifically related to the loss incurred from the sale of a capital asset for less than its purchase price.

A Loss Generated When a Company's Tax Deductions Are Greater