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Tracking Tax Write-Off Carryovers

Due to various limitations on certain deductions and tax credits, you may not be able to use the full amount of a write-off in the year in which it arises. Instead, the unused amount may be carried forward and used in future years (or back in limited situations). Knowing the ins and outs of tracking tax write-off carryovers can be very useful.

John Sculley III, then-president of PepsiCo until he became the CEO of Apple Inc. for more than a decade, said, “timing is everything.” He was probably referring to business moves, but the sentiment applies with equal force to tax write-offs. Here are some of the most common carryovers for small business owners to look for and the records you should keep.

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