Tax Loss Carryforward
/ˈtæks lɔs ˈkæriˌfɔrwərd/
Definitions
- (n.) A tax provision allowing a taxpayer to apply a net operating loss to future tax periods to reduce taxable income and tax liability.
The corporation utilized a tax loss carryforward to offset its profits in the following fiscal year.
Forms
- tax loss carryforward
- tax loss carryforwards
Related terms
See also
Commentary
Typically governed by tax codes, the tax loss carryforward enables strategic tax planning by offsetting profits in profitable years with prior losses.
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.