Tax umbrella

Author Topic: Tax umbrella  (Read 326 times)

Offline munna99185

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Tax umbrella
« on: April 03, 2014, 01:10:35 PM »
Tax umbrella is the use by a company of the losses it sustained in previous years to offset taxes on the profits it achieves in future years. Individuals can also use a tax umbrella so that their investment losses in previous years offset their investment gains in future years. A tax umbrella takes advantage of a tax law provision to reduce tax liability. Businesses and individuals 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.
[Source:http://www.investopedia.com]


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University

Offline shahanasumi35

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Re: Tax umbrella
« Reply #1 on: April 09, 2014, 07:45:22 PM »
Informative post.

Offline gour2010

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Re: Tax umbrella
« Reply #2 on: April 13, 2014, 10:57:04 AM »
thank for sharing good  concept 8)