tax umbrella(redirected from Tax Umbrellas)
Tax loss carryforwards from previous business losses that form a tax shelter for profits earned in current and future years.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A tax loss carryforward from a previous year. A tax loss carryforward is a business loss in one year that may be used for up to five years to offset profits in future years. For example, if a business loses $800,000 in year one but makes a $1 million profit in year three, it may only be taxed for $200,000 in income for year three. The remaining $800,000 is a tax umbrella.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A corporation's tax loss carryforwards that may be used to shelter profits in future years.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.