Carryback

(redirected from Loss Carryovers)
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Carryback

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.

carryback

A business operating loss that, for tax purposes, may be deducted for a certain number of prior years, usually no more than three. A business uses a carryback to recover taxes paid on income earned in prior years. For example, if a firm experiences a year of large losses following a period of profitable operations, it may use the losses to cancel out profits from preceding years on which taxes have been paid. When the taxes a company paid on profits are canceled because of a carryback, the firm is issued a refund by the Internal Revenue Service. Also called carryover, tax loss carryback.
References in periodicals archive ?
In either scenario, the subsidiary's NOL carryovers, capital loss carryovers, and deferred deductions (including its share of the consolidated tax attributes) that are not otherwise reduced or reattributed, and the subsidiary's credits (including its share of consolidated credits), are eliminated.
real estate rental) is disposed, will the passive loss carryovers be re-characterized as losses "not from a passive activity.
As noted above, add capital loss carryovers to the decedent's $1.
Positive adjustments include capital loss carryovers and carrybacks, the net operating loss deduction, and the dividends-received deduction.
In April, TEI urged the IRS to eliminate the overlap between the SRLY consolidated return rules and the section 382 limitation on loss carryovers.
ISI has previously announced that it intends to participate in the State of New Jersey's corporation business tax benefit certificate transfer program (the "Program"), which when effective will allow certain high technology and biotechnology companies to transfer unused New Jersey net operating loss carryovers to other New Jersey corporation business taxpayers.
This income can be completely offset by utilizing portions of the passive loss carryovers from Properties B, C and E.
If cancellation-of-debt income is excluded from taxation, then starting in the year after the cancellation occurred the debtor must reduce any remaining tax loss carryovers, tax credits and the tax cost of depreciable property to the extent of the excluded income.
However, investors with capital loss carryovers, excess investment interest or other unused deductions may benefit from a fund with a high turnover rate more likely to generate higher current taxable income.
On its 1991 tax return it claimed the passive loss carryovers based on IRC section 469(g)(1)(A).
In 1991, the Treasury Department and the Internal Revenue Service issued proposed regulations concerning the application of the SRLY rules to net operating loss and capital loss carryovers and carrybacks and built-in loss deductions.
ISI) (Nasdaq: IFSC) today announced it intends to participate in the State of New Jersey's corporation business tax benefit certificate transfer program (the "Program"), which when effective will allow certain high technology and biotechnology companies to transfer unused New Jersey net operating loss carryovers to other New Jersey corporation business taxpayers.