carrying charges


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Carrying Charge

1. The cost of storing a commodity over a period of time. It includes incidental costs, insurance coverage, and the physical cost of storage. It does not include depreciation, if any. The carrying charge is incorporated to the price of a commodity on the futures market.

2. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

3. Fees a firm charges for making a loan. The largest single carrying charge is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.

carrying charges

1. The cost of owning and storing a commodity during a period of time. This cost influences the difference between the futures price and the expected future spot price.

carrying charges

Costs incurred in owning property up until completion of a development, as opposed to the actual development expenses themselves.Carrying charges must be capitalized and then amortized, or expensed, over the next 10 years as tax deductions. Examples include interest accrued on development loans,and property taxes.

References in periodicals archive ?
The factors that contribute to the total carrying charge, detailed as to utility-specific conditions, include the following:
The specific rules governing operating costs and carrying charges were not changed by the 1986 Tax Act.
To avoid foreclosure or pricey assessments when owners are delinquent in paying their fees, condos should have three times the entire building's monthly carrying charges in a reserve fund, said Cholst.
The carrying charge has to be incurred with respect to property.
The magnitude of the district's debt burden is additionally tempered by its ability to service debt carrying charges from annual surpluses versus unrestricted reserves.
While the issuance of this additional debt will pressure the university's debt burden, the ability of OSU to manage debt carrying charges from annual operating surpluses versus unrestricted reserves helps to mitigate the risk of overleveraging.
Vacant, the 11,134 square-foot space was selling for $17,780,000 and had annual carrying charges of $448,962.
Approximately 90% of the city's annual debt carrying charges are expected to be paid from urban renewal service payments in lieu of taxes and estate tax revenues, lessening the tax burden on residents.
The Appellate Division held that plaintiff's measure of damages should include the costs of her attempt to soundproof the studio, her costs in finding new suitable accommodations, some of her carrying charges on the loft until she was able to sublet it, and the Appellate Division remanded the case back to the trial judge to determine those damages and also to entertain any additional theories of recovery for the plaintiff.
Principal amortization on the governmental project and gaming enterprise bonds does not begin until 2012 and 2013, respectively, providing ample time for ramp up of the California casino project before debt service carrying charges increase.
The PUCN's Order adjusted the Company's deferred energy account balances for carrying charges on capacity costs which resulted in a one-time write-off of approximately $0.
Approximately 55 percent is the "hard" cost of construction, with "soft" costs such as carrying charges and design fees comprising the remaining 25 percent.