Tax Provision

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August 25, 2024 3 min read Definitions

Loss Carryback: Offsetting Net Loss Against Previous Year's Net Income

Finance Accounting Taxes Tax Provision Net Loss Income Tax Refund Accounting Finance

Loss Carryback refers to a tax provision that allows businesses to offset current year's net losses against net income of prior years, resulting in tax refunds for previously paid taxes. This article explores the mechanics, advantages, and implications of loss carryback rules.