"C-Corp Capital Gains: Tax Rules Simplified"

C-Corporations are taxed at a flat 21% rate on both long-term and short-term capital gains, without preferential treatment for long-term gains, and can offset gains with losses carried across tax years. Additional taxes may apply if gains are distributed as dividends or subject to state corporate taxes.

Capital gains for C-Corporations are taxed at the same rate as regular corporate income. Unlike individuals, C-Corporations do not receive preferential tax treatment for long-term capital gains. Below is a summary of how such gains are taxed:

Aspect	Description
Tax Rate	C-Corporations are taxed at the flat corporate tax rate, which is currently 21% as per the Tax Cuts and Jobs Act of 2017.
Long-Term vs Short-Term	Unlike individual taxpayers, C-Corporations do not benefit from lower rates for long-term capital gains. Both long-term and short-term capital gains are taxed at the same corporate tax rate.
Offsetting Gains with Losses	Capital losses can be used to offset capital gains. If capital losses exceed gains, they can be carried back 3 years or forward 5 years to offset gains in other tax years.
Dividends Received	If capital gains are distributed to shareholders in the form of dividends, shareholders may incur additional taxes at their individual tax rates.
State Taxes	In addition to federal taxes, C-Corporations may also be subject to state corporate taxes on capital gains, which vary by state.

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