Carryback

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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 ?
Canadian Mike Weir, who missed the cut at the British Open, won 45,000 dollars (pounds 20,500) on the fourth after two carry-overs.
The trio pool would be carried over 40 per cent of the time, and most `players', of which your correspondent was one, stepped in when there was a carry-over of over pounds 25.
The operational data from the regions, as of March 11th, 2016, agricultural enterprises have available, taking into account the carry-overs, 843 thousand tons of nutrients mineral fertilizers accounting for 89% of the requested amount (in 2015 this figure was 88%), including nitrogen fertilizers 613 thousand tons or 91%, phosphate fertilizers 133 thousand tons or 87%, potassium fertilizers 97 thousand tons or 82%, generally, similar to the level of availability in the previous year.
On the expenditure side, the highest difference between the final result and initial budget in 2002 occurred in the Structural Funds (heading 2): despite important carry-overs from 2002 to 2003 some Euro 4.85 billion have not been disbursed, mainly related to the previous programming period.
Brough Park and Belle Vue are both taking big carry-overs from Saturday into tonight's fixtures and five-figure pots look certain to result.
First, any modified capital gain net income (MCGNI) allocated to each period is offset by any recognized built-in capital losses and any capital loss carry-overs, subject to the Sec.
However, none of the bets placed - many of which took advantage of half-price discount vouchers carried in the Racing Post - had all six winners, meaning there will be carry-overs for both the win and bonus pools.
1.1502-21, the IRS would limit the use of net operating loss carry-overs of a purchased subsidiary in a consolidated return effective for acquisitions after Jan.
I suspect that most people will show little or no interest in the Scoop6 until it builds up into carry-overs (again memories of the Tote Jackpot).