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.
having cleared their carry-overs, are suddenly looking for stock.
7 billion in 2012 before gap-closing measures and prior-year carry-overs.
In the future, with a low budget, we should try carry-overs," pleads the budget commissioner, who sees such flexibility as "a rescue device".
are carry-overs or extensions of long-term goals already being worked on, like strengthening the town's fiscal policies.
Since the minimums have been raised, the carry-overs are much larger - pounds 60 or pounds 70 is the norm - and this obviously attracts more money chasing the pot, and strengthens the pool.
Generally, the DLF can be expressed as the excess of a subsidiary's loss carry-overs and aggregate adjusted basis in its assets, over the value of its stock (plus any liabilities) immediately after the disposition of its stock by a consolidated group member (Regs.
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.