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 ?
Interest and carrying charges properly allocable to personal property that is part of a straddle means the excess of interest and carrying charges (as defined below) over the allowable income offsets (as defined below).
Therefore, a long-term cost of capital should be used in calculating the inventory carrying charge.
The total costs of inventory are the sum of the carrying charges and the ordering costs.
The specific rules governing operating costs and carrying charges were not changed by the 1986 Tax Act.
The impact of delinquent owners is much more severe for smaller condo buildings, which can see double-digit increases in carrying charges to cover shortfalls, said Cholst.
3 billion will be pursued to the extent internal funding sources are sufficient, including state support, and/or system campuses have the capacity to service carrying charges associated with external sources of financing.
Elevator co-op has full-time superintendent, laundry room and low carrying charges.
These fees may, however, be capitalized as carrying charges under Sec.
15 times (x) over the past five years; the broadening of pledged revenues in conjunction with issuance of the bonds is expected to offset the increase in debt carrying charges.
2 million fourth pledge of carrying charges for The Ansonia, a 398-unit condominium located at 2109 Broadway in Manhattan.
Continued favorable trends in health system operations, student demand, and research funding enabling the university to generate surpluses sufficient to service its increased debt carrying charges.
Fourth, The Sycamore's 421A-tax abatement program effectively reduces the monthly carrying charges over a 10-year period.