carryover (2024)

Carryover is an accounting method by which the deductions and credits of a taxable year that are either not used in that year, or could not be considered entirely in that year, are then applied to reduce the tax liability of later/subsequent years. Some of the items which may be carried over might include net operating losses, charitable contributions, and investment tax credits, etc.

There is another concept called a carryover basis, which is used to transfer a previous owner's original investment amount (plus improvements) to a subsequent owner for the purpose of calculating gain or loss upon a sale or exchange of an asset. Carryover is also used in other contexts, such as carryover of accrued vacation time or credits earned toward satisfying a minimum requirement in a degree course, etc. (See also:carryback)

[Last updated in June of 2021 by the Wex Definitions Team]

carryover (2024)

FAQs

Carryover? ›

: to hold over (something, such as goods) for another time or season. 2. : to deduct (a loss or an unused credit) from taxable income of a later period. intransitive verb. : to persist from one stage or sphere of activity to another.

Is it carryover or carry over? ›

If something is a carryover from an earlier time, it began during an earlier time but still exists or happens now.

What is a carryover payment? ›

Carryover is an accounting method by which the deductions and credits of a taxable year that are either not used in that year, or could not be considered entirely in that year, are then applied to reduce the tax liability of later/subsequent years.

What is an example of carry over? ›

to move to or to come from a place or time: I try not to let my problems at work carry over into my private life. The competitive balance of the regular season has been carried over to the playoffs.

What does "carried over" mean? ›

phrasal verb. If something carries over or is carried over from one situation to another, it continues to exist or apply in the new situation.

Is carryover one word or hyphenated? ›

carryover. noun. car·​ry·​over ˈkar-ē-ˌō-vər.

How do you use carryover in a sentence? ›

Tonight's votes from the judges will be carried over to next weekend, when viewers can have their say too. This time may not carry over from one year to the next. Perhaps that will carry over into another record and perhaps a new tour.

What is a carryover in money? ›

an amount of money that has not been used and so can be used later The $20 million included a $7 million carry-over from last year's budget.

How do I know if I have carryover? ›

To calculate a capital loss carryover, subtract your capital gains from your capital losses in a tax year. If losses exceed gains, the excess amount is the carryover.

What are carryover funds? ›

A carryover is the unspent or unobligated balance of funds from prior budget periods that the recipient may request to use in the current budget period for unmet needs supporting the goals and objectives of the project.

What is a carry over transaction? ›

Carry Over Transaction (COT) means a form of financing through the Stock Exchange consisting of two simultaneous transactions, the first for purchase of an underlying security (shares) on the following scheduled settlement date for the security and the second for selling back the security for a subsequent settlement ...

What is another word for "carry over"? ›

Synonyms: continue , persist, survive , extend , endure , go on, be passed on, be carried over, hold over, carry forward, remain , be left.

What is the disadvantage of carry over? ›

Carryover effects can have a significant impact on a student's career prospects. Many employers use CGPA as a factor in their hiring decisions, particularly for entry-level positions. A student with a lower CGPA due to carryover effects may be at a disadvantage compared to their peers with a higher CGPA.

What is carry over pay? ›

PTO carryover is the amount of unused paid time off (PTO) an employee can carry over from one year to the next. PTO may include vacation leave, sick leave, parental leave, and bereavement leave, depending on your organization's PTO policy.

What is a carry over charge? ›

The carry-over charge is the interest rate that is charged or earned when a trading position is held open overnight. It is also known as the rollover fee or swap rate. Carry-over charges apply to financial markets that allow traders to hold positions overnight, such as the forex and CFD markets.

What does carry over mean on a pay stub? ›

Definition: Amount of hours worked that can be carried over to the next pay period for employees who work a part-time work schedule and only accrue annual leave based on number of hours worked.

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