Net operating loss carrybacks


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Net operating loss carrybacks

The application of losses to offset earnings in previous years.

Carryback

In accounting, a way for a company to reduce its tax liability by applying a net operating loss to previous years in which it made a profit. If a company deducts more than its net income in a given tax year, it may take the difference between the deduction and the net income (a negative number) and apply it as a deduction on taxable income for the previous five years. For example, if a company makes $1,000,000 in one year, and loses $500,000 the following year, it may only be liable for a $500,000 profit on the year it makes a profit. That is, it may receive a tax refund on part of what it paid for the profitable year. See also: Future Income Tax.
References in periodicals archive ?
The restatement to the previously reported financial results for 2001 was to the provision for income taxes in order to restate the calculation of the tax benefit attributable to the alternative minimum tax net operating loss carrybacks available for 2001.
For 1990 and 1991, C realized operating losses, which B deducted (through net operating loss carrybacks and carryovers).
The utilization of net operating loss carrybacks in the first quarter of last year, along with the cumulative effect of the change in accounting principle, resulted in a net loss for that period of $13.
Even worse, the income tax net operating loss carrybacks require states to refund taxes paid in years preceding economic downturns.
At June 30, 2002, the Company had fully utilized its net operating loss carrybacks and had approximately $680,000 and $2,647,000 in Federal and California net operating loss carryforwards, respectively, available to offset future taxable income.
Other established collateral agreements require the taxpayer to{l)reduce the basis of assets for purposes of computing depreciation and gain or loss on disposition, (2)waive net operating loss carrybacks and carryforwards and (3)waive bad debt losses or other deductions.
At December 31, 2001, the Company had fully utilized its net operating loss carrybacks and has approximately $3,856,000 and $2,928,000 in Federal and California net operating loss carryforwards, respectively, available to offset future taxable income.
30, 2001, the company had fully utilized its net operating loss carrybacks and has approximately $3,937,000 and $3,009,000 in Federal and California net operating loss carryforwards, respectively, available to offset future taxable income.
Net income for second-quarter 2001 includes a tax benefit of $255,000 related to income tax refunds on net operating loss carrybacks.
At March 31, 2001, the company had fully utilized its net operating loss carrybacks and had approximately $4,020,000 and $3,090,000 in Federal and California net operating loss carryforwards available to offset future income tax expense.
com and ASP revenue expectations, expected expansion of Indus' ASP business into second tier markets and anticipated income tax refunds from application of net operating loss carrybacks for federal income tax purposes.
31, 1999, as all available net operating loss carrybacks have previously been recognized.
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