A Corporation May Carry a Net Capital Loss Forward Five

question 119

True/False

A corporation may carry a net capital loss forward five years to offsetnet capital gains in future years but it may not carry a net capital loss back to offsetnet capital gains in previous years.

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Definitions:

Cumulative Surplus

The total accumulated excess of income over expenses and losses over a period.

Net Cash Inflow

The difference between a business's cash inflows and cash outflows over a specific period.

Minimum Cash Balance

The least amount of cash a company aims to hold on hand to meet immediate operational and financial demands.

Net Cash Inflow

The difference between a company's cash receipts and its cash disbursements during a specific period.