Tax Umbrella

外汇网2021-06-19 14:31:02 188

The use by a company of the losses it sustained in pvious years to offset taxes on the profits it achieves in future years. Inpiduals can also use a tax umbrella so that their investment losses in pvious years offset their investment gains in future years. A tax umbrella takes advantage of a tax law provision to reduce tax liability.

Businesses and inpiduals are limited in how much of a loss they can use to offset taxes in any given year. Any loss that is left over can be used to offset taxes on gains in future years. A tax umbrella is also known as a tax loss carryforward.

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