The Baskerville Corporation has a net $6,500 capital loss during the current taxable year. They will be able to deduct $3,000 this year and carries the remaining $3,500 forward.

Question

Quizplus · Accepted Answer

Corporations cannot deduct capital losses against ordinary income as individuals can. They can only carry back capital losses to the previous three years and forward to the next five years to offset capital gains, not deduct a specific amount like $3,000 in a single year.

The Baskerville Corporation Has a Net $6,500 Capital Loss During