Capital Loss Carryover
Definition
A US provision allowing capital losses that exceed the amount deductible in a year to be carried forward to offset capital gains and limited ordinary income in later years.
Related Terms in US Tax
Reasonable Compensation (S-Corp)
The IRS requirement that an S-corporation owner-employee be paid a reasonable salary for their work before taking profit distributions, preventing avoidance of payroll taxes by underpaying wages.
De Minimis Safe Harbor
A US tax election letting businesses expense lower-cost asset purchases immediately, up to a per-item threshold, rather than capitalising and depreciating them, simplifying fixed-asset accounting.
Fiscal vs Calendar Year
A calendar tax year runs January to December; a fiscal year is any 12-month period a business chooses for reporting and tax. The choice affects filing deadlines and how seasonal results are presented.
Form 1099
An IRS information return used to report various types of income other than wages. 1099-NEC is for non-employee compensation ($2,000+ to a contractor for payments made in 2026 onward; $600+ for 2025 and earlier). Businesses must file by January 31. HelloBooks tracks contractor payments for 1099 reporting.
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