Carryback Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Carryback, written in plain English, along with examples of how it is used.

What is Carryback?

(n) Carry back is the practice by which the loss incurred in a particular year is used to setoff the gain or profit of the previous years so as to reduce the tax burden of the previous years where there was a taxable profit.