Tax Loss


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Related to Tax Loss: tax loss carryforward

Tax Loss

A loss of value that results in a tax deduction. A tax loss may be a business loss or it may be the loss of a personal asset such as a house. For example, the amount one spends repairing a car after a wreck may be a tax loss.

In order to qualify as deductible, the loss must not be covered by insurance and (for the loss of an asset) must be the result of a real disaster such as theft. Gradual damage generally does not qualify.
References in periodicals archive ?
"Alongside its study on the implementation of a two-tier tax system, the Government could consider the feasibility of introducing a group tax loss relief regime, which could drive more business activities in the Hong Kong financial services industry, in particular the banking sector."
The defendant also appealed his sentence, arguing that the district court had improperly calculated the amount of tax loss resulting from the fraudulent returns.
To be globally competitive, Canada should implement a formal Loss-Transfer System--or otherwise provide for group tax loss relief.
They generally don't have a tax loss because the depreciated value of their contents is less than their insurance proceeds.
By taking a large paper loss on a stock or a mutual fund right away, an investor can build up a "bank" of tax losses that can be used to offset future gains.
Previously, investors used straddles to create immediate deductible tax losses without a current economic loss.
(13.) Of 30 OECD member countries, Canada is 1 of only 9 countries that does not provide group tax loss relief directly through its legislation.
The S&Ls claimed the exchanges nevertheless resulted in tax losses used to generate tax refunds from carryback of the resulting net operating losses.
To be globally competitive, Canada should implement a formal Loss-Transfer System--or otherwise provide for group tax loss relief.(5) The adoption of a formal loss-sharing mechanism in the Income Tax Act would complement the administrative concessions and provide much needed clarity, certainty of result, and greater stability in the law.
On June 20, TEI submitted comments to Canadian Minister of Finance John Manley, urging the Canadian government to introduce a formal system to permit the sharing and utilization of tax losses and other tax attributes among groups of related corporations.
In other cases, the transactions necessary to effect the loss transfer may produce an ineffective management structure, which will generally result in a decision to forgo the tax loss. In today's competitive global environment, where investment capital and labour are highly mobile, TEI submits that the goal of achieving a tax-efficient corporate structure should not be at odds with management-efficient structure.
Under IAS 12, firms are required to disclose the effects of tax debts, tax credits and tax losses that might affect firms' net revenues in the future.