tax loss carryback


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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.

tax loss carryback

See carryback.
References in periodicals archive ?
The tax loss carryback provision is a morsel of the roughly $145-billion economic stimulus plan being negotiated by the administration and Congress, which would include rebates of several hundred dollars for individuals and couples, and so-called bonus depreciation to allow companies to deduct 50 percent of business investments they make this year.
The prior year income included a $720,000 net benefit arising out of a tax loss carryback claim and income of $657,000 related to the discontinued operations of The Strouse, Adler Company.
The prior year income includes a $720,000 net benefit arising out of a tax loss carryback claim and income of $172,000 related to the discontinued operations of The Strouse, Adler Company.
7 million, which reflects the full benefit of its net tax loss carryback capacity for 2002.
6 /PRNewswire/ -- The Aristotle Corporation (Nasdaq: ARTL) reported today that it had received a payment from the Internal Revenue Service with respect to a tax loss carryback claim related to its 1996 tax year in the amount of $1.
The approximate net cost to the company of 340 riot-related claims, after reinsurance and applicable tax loss carryback, will be $10 million.
80 a share for the comparable quarter last year when earnings were enhanced by the elimination of tax expenses due to a tax loss carryback in that year.