Question

Which of the following comparisons is correct?
Options:
a) Both corporation and individual long-term capital losses carryover as short-term capital losses.
b) Both corporations and individuals may use an alternative tax rate on net capital gains.
c) Corporations may carryforward capital losses indefinitely; individuals may only carryforward capital losses for five years.
d) Corporations may carryback capital losses; individuals may not.

Answer 1

Answer: The correct answer is "d) Corporations may carryback capital losses; individuals may not.".

Explanation: The comparisons "Corporations may carryback capital losses; individuals may not" is correct because indeed speaking of corporations, they have the benefit of retaining capital losses, unlike individuals who cannot.