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23 July, 13:15

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.

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Answers (1)
  1. 23 July, 13:31
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    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.
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