Definition, Meaning & Synonyms
offset-a-loss-against
phrase
[ˈɔfˌsɛt ə lɔs əˈɡeɪnst]
Definition
To balance or counteract a financial loss by applying it against taxable income or gains.
Examples
- Investors can offset a loss against their capital gains to minimize tax liability.
- The company offset a loss against its profits from other divisions to lower its overall tax burden.
- To make the most of tax regulations, individuals can offset a loss against future income.
Meaning
When a loss incurred in one investment or business operation is used to reduce the amount of taxes owed on profits from another source.
Synonyms
- counterbalance a loss
- reduce tax exposure
- balance losses
