Final answer:
The type of losses that can be carried forward indefinitely are net capital losses.
Step-by-step explanation:
The type of losses that can be carried forward indefinitely are net capital losses.
Net capital losses occur when the capital losses of an individual or business exceed their capital gains. These losses can be used to offset future capital gains, reducing the overall tax liability.
For example, if a person sells an investment property for a loss of $10,000 but later sells another property for a gain of $15,000, they can offset the $10,000 loss against the $15,000 gain, resulting in a net capital gain of $5,000.