Ted is the sole shareholder of a C corporation, and Sue owns a sole proprietorship. Both businesseswere started in 2011, and each business sustained a $5,000 net capital loss for the year. Which of thefollowing statements is correct?

A. Ted's corporation can deduct the $5,000 capital loss in 2010.
B. Ted's corporation can deduct $3,000 of the capital loss in 2010.
C. Sue can carry the capital loss back three years and forward five years.
D. Sue can deduct the $5,000 capital loss against ordinary income in 2010.
E. None of the above.

Answer rating: 100% (QA)

C Sue can carry the capital loss back three years and forward five years If part of a capital loss r... View the full answer