Loss carry-back is best described as:A) Using a year's capital losses to offset capital gains in past years.B) Using a year's capital losses to offset capital gains in future years.C) The taxable difference between adjusted cost of disposal and UCC, when UCC is smaller.D) Restatement of all prior years' financial statements if material errors are foundE) Restatement of retained earnings if past losses are discovered.

Question

Loss carry-back is best described as:A)  Using a year's capital losses to offset capital gains in past years.B)  Using a year's capital losses to offset capital gains in future years.C)  The taxable difference between adjusted cost of disposal and UCC, when UCC is smaller.D)  Restatement of all prior years' financial statements if material errors are foundE)  Restatement of retained earnings if past losses are discovered.

Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  Loss carry-back involves applying current year's capital losses against capital gains in previous years, allowing for a potential tax refund based on past tax payments.

Definitions

Learning Objectives

Learning Objectives

Related questions