PTAX Capital Gains and Losses R11-087X

What is the difference between an individual and a corporation handling a net capital loss?

• Individuals can deduct up to $3,000 per year ($1,500 for married taxpayers filing separately).  Any remaining amount can be carried forward indefinitely.
• Corporations do not get a capital loss deduction.  However, to reduce capital gains, they can carry net capital losses back for a maximum of three years and forward for a maximum of five years.  If not fully used up after five years, the remaining capital loss is lost forever.  Current year losses are applied first when carrying back or forward capital losses.  These losses automatically become short-term, in carrying back or forward, regardless of their origin.