1.
. (TCO F) When comparing corporate and individual taxation, the following statements are true,
except:
Individuals have exemptions and a standard deduction; corporations do not.
Both corporate and individual taxpayers may have a long-term capital loss carryforward.
All taxpayers may carry net operating losses back two years, forward 20 years.
Both types of taxpayers have percentage limitations on the charitable contribution deduction,
coupled with a carryover of the excess contribution.
Solution
correct option is "B" -Both corporate and individual taxpayers may have a long term capital
loss carryforward.
In case of Individual tax payer,excess of capital loss over capital gain is capital loss ,whereas in
case of corporate tax payer ,excess of capital loss over capital gain included in gross income is a
capital loss.
Corporate can carry forward losses for 5 years wheras an individual can carryforward for
indefinite.