A Corporation Has a Net Capital Loss

question 69

True/False

A corporation has a net capital loss. The significance of a net capital loss in 2013 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.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Head of Household

A filing status for individual U.S. taxpayers who are unmarried and pay more than half the cost of maintaining a home for themselves and a qualifying person.

Total Income

The sum of all earnings or revenues received by an individual or organization, before any deductions or taxes.

Total Deductions

The sum of all the amounts subtracted from gross income to reduce taxable income, including tax, social security contributions, and other withholdings.