Which of the following is true concerning capital losses and net operating losses for corporations:

Capital loss Net operating loss

Question

Which of the following is true concerning capital losses and net operating losses for corporations:
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Capital loss Net operating loss

Quizplus · Accepted Answer

Corporations can carry capital losses back 3 years and carry them forward 5 years. Net operating losses (NOLs), as of the latest tax laws, can be carried forward indefinitely but can no longer be carried back, except for specific exceptions. However, the most accurate choice given the options and considering the general rule prior to the Tax Cuts and Jobs Act (TCJA) of 2017, which changed NOL carryback and carryforward rules, is option C, which aligns with the pre-TCJA understanding of capital loss treatment and the post-TCJA treatment of NOLs for corporations.

Which of the Following Is True Concerning Capital Losses and Net