Carryback
/ˈkæriˌbæk/
Definitions
- (n.) A tax provision allowing a taxpayer to apply a net operating loss to prior tax years, resulting in a refund of previously paid taxes.
The company utilized a carryback to offset losses against its taxable income from previous years, receiving a tax refund.
Forms
- carryback
- carrybacks
Related terms
See also
Commentary
Carrybacks are commonly used for managing income tax burdens; drafters should specify applicable tax years and limits for clarity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.