A corporation may carry a net capital loss forward five years to offset capital gains in future years but it may not carry a net capital loss back to offset capital gains in previous years.
A corporation carries a net capital loss back 3 years (required) and forward 5 years.

Question

Quizplus · Accepted Answer

A corporation cannot carry a net capital loss back to offset capital gains in previous years. The statement in option A is incorrect. The correct time frame for carrying a net capital loss forward is up to 5 years.

A Corporation May Carry a Net Capital Loss Forward Five