A corporation has a net capital loss.The significance of a net capital loss in 2016 for a corporation is that it can be carried back 3 years and carried forward 5 years by a corporation to offset capital gains in other taxable years.

Question

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This is true according to the U.S. tax code (Internal Revenue Code Section 1212). A corporation with a net capital loss can carry it back up to 3 years or forward up to 5 years to offset capital gains in other taxable years.

A Corporation Has a Net Capital Loss