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:

Construction Firm

A company that specializes in building and designing infrastructure, buildings, and other architectural projects.

Control Problems

Issues arising from the attempt to monitor or regulate processes, people, or systems, which can lead to inefficiency or loss of focus.

Internal Auditing

The ongoing evaluation of a company's operations and performance by a dedicated internal department to ensure compliance and efficiency.

External Auditing

The examination of financial records by an independent third party, to ensure the accuracy and compliance with established standards and regulations.