Financial Carry Forward

Financial carry forward refers to the ability to apply certain unused financial benefits—such as losses, credits, or deductions—from one period to future periods. This allows individuals or businesses to offset future taxable income with these prior year advantages, potentially reducing future tax liabilities. For example, if a business incurs a loss this year, it can often carry that loss forward to reduce taxable income in subsequent years. The specific rules and time limits for carrying forward depend on the tax laws in a particular jurisdiction.