If a Corporation Is Unable to Deduct a Capital Loss

question 59

True/False

If a corporation is unable to deduct a capital loss against capital gains for a particular tax year, it loses the tax benefit since the loss may not be carried to other tax years.

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Definitions:

Negligence Theory

A legal principle that holds parties liable for harm resulting from their failure to act with the care that a reasonably prudent person would have exercised under similar circumstances.

Nuisance Theory

Nuisance theory refers to a legal principle used to address harm or annoyance caused by one party to another, which can involve both private nuisances between individuals and public nuisances affecting the community.

Strict Liability Theory

A legal doctrine holding an individual or entity liable for damages or harm, regardless of fault or intent.

Environmental Compliance Audits

Systematic assessments that evaluate how well a company or organization adheres to environmental laws and regulations.