Can corporation tax losses be carried back?  carried forward?

Yes, in some cases, corporations may be able to carry back tax losses to previous tax years. This means that the corporation can use the losses to offset income and reduce tax liability in a previous tax year, resulting in a tax refund.

The rules for carrying back tax losses vary depending on the jurisdiction and the type of corporation. In the United States, C corporations (also known as regular corporations) may be able to carry back tax losses for up to two years. S corporations (small business corporations) and partnerships do not have the option to carry back tax losses, but they may be able to carry them forward to offset income in future tax years.

Corporations may also be able to carry forward tax losses to offset income in future tax years. This means that the corporation can use the losses to reduce its tax liability in a future tax year.

The rules for carrying forward tax losses vary depending on the jurisdiction and the type of corporation. In the United States, C corporations (also known as regular corporations) may be able to carry forward tax losses indefinitely. S corporations (small business corporations) and partnerships may also be able to carry forward tax losses, but the losses may be subject to certain limitations.

In other countries, the rules for carrying back tax losses may vary. Corporations should consult with their local tax authorities for more information about their options for carrying back tax losses.

Prominent Financial Consultants offers a range of services to help our clients succeed, and we would love the opportunity to discuss how we can help you. If you would like to schedule an appointment with us, please schedule a free 15 Minute Financial Clarity Call so that we can learn more about your needs and goals or schedule your tax appointment here.