[Anonymous]

I’m going over the ninja notes and, I am just wondering, is what I am reading right?

Corporations has 3 years carryback and 5 years carryfoward, and can deduct 3000 of capital losses.

Individuals only has carryforward, and can deduct 3000 of capital losses.

[Anonymous]

Corporations have a 3/5 carryback, carryforward, but can only offset capital losses against capital gains. There is no $3,000 maximum.

Individuals can offset $3,000 of capital losses against $3,000 of ordinary income each year. The remainder can be carried forward indefinitely.

[Anonymous]

Thanks CPAmommy. I did feel that was kind of strange to put the capital loss example with the 3000 deduction in the Corporate Tax section.

[Anonymous]

But don't forget, if individual has a 70k capital loss, incurs 50k of capital gains in the year, you wipe out the 50k of income and can still take a 3 k loss. Your carry forward into next year becomes 17k. (70k – 50k – 3k = 17 k canary forward for an individual)

[Anonymous]

^^Yep. Good catch!

[Author]

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