Corporate Capital Gains and Losses
Special Rules for Corporate Capital Transactions
Corporations recognize capital gains and losses under rules that differ from those applicable to individuals. Capital losses generally may offset capital gains but are subject to limitations.
- Capital gains are included in taxable income.
- Capital losses generally offset capital gains.
- Net capital losses receive special treatment.
- Corporate rules differ from individual capital loss rules.
Tip
Do not assume corporations receive the same capital loss treatment as individuals.
Summary
Corporate capital gains and losses follow specialized rules that differ from individual taxation.