Capital Gain, Ordinary Corporate Operating Loss, Earning Retention

Capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) than its purchase price.

Ordinary corporate operating losses can be carried backward for 2 years or forward for 20 years to offset taxable income in a given year.

Improper accumulation is the retention of earnings by a business for the purpose of enabling stockholders to avoid personal income taxes on dividends.

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