carrying charge


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carrying charge

1. A cost incurred for the physical storage or ownership of an asset that is unproductive or not lucrative. The strike by pilots and flight attendants devastated the airline's profits, as they had to refund passengers' ticket prices as well as pay a higher carrying charge for their grounded airplanes. The carrying charge for the new apartment complex, which failed to attract potential homeowners, eventually bankrupted the development company.
2. An additional charge, usually interest, applied to an account that is paid in installments. The phone company advertised having the lowest rate, but after the carrying charge was applied, my monthly bill was actually higher than ever before!
See also: carry, charge

carrying charge

1. Interest charged on the balance owed when paying on an installment plan, as in What is the carrying charge for this credit card? The term denotes the amount charged for carrying the remaining debt. [Late 1800s]
2. The cost incurred when an asset is unproductive, as when aircraft are grounded during a strike, real estate cannot be developed owing to zoning laws, or similar circumstances. For example, The carrying charge for owning this building may send us into bankruptcy.
See also: carry, charge
References in periodicals archive ?
The total costs of inventory are the sum of the carrying charges and the ordering costs.
The significant point, however, is that only taxpayers in the first category can fully deduct all operating expenses and carrying charges related to their timber activity against income from any source each year as incurred.
SIGNIFICANT INCREASE IN DEBT: Rates are expected to rise over the next five years to meet the already high debt carrying charges and expected issuance of additional bonds.
The impact of delinquent owners is much more severe for smaller condo buildings, which can see double-digit increases in carrying charges to cover shortfalls, said Cholst.
Debt carrying charges associated with these bonds is expected to be offset by additional revenue generated by the increase in occupied beds.
2 million fourth pledge of carrying charges for The Ansonia, a 398-unit condominium located at 2109 Broadway in Manhattan.
If the corporation rents the land to the farmer, the loss will be passive and the corporation will be able to deduct only $2,400 (the amount of the rental income) of the carrying charges on the land.
3 billion will be pursued to the extent internal funding sources are sufficient, including state support, and/or system campuses have the capacity to service carrying charges associated with external sources of financing.
Fourth, The Sycamore's 421A-tax abatement program effectively reduces the monthly carrying charges over a 10-year period.
15 times (x) over the past five years; the broadening of pledged revenues in conjunction with issuance of the bonds is expected to offset the increase in debt carrying charges.
This allows them to free up capital and get rid of negative carrying charges.
Continued favorable trends in health system operations, student demand, and research funding enabling the university to generate surpluses sufficient to service its increased debt carrying charges.
Vacant, the 11,134 square-foot space was selling for $17,780,000 and had annual carrying charges of $448,962.
Approximately 90% of the city's annual debt carrying charges are expected to be paid from urban renewal service payments in lieu of taxes and estate tax revenues, lessening the tax burden on residents.
The Appellate Division held that plaintiff's measure of damages should include the costs of her attempt to soundproof the studio, her costs in finding new suitable accommodations, some of her carrying charges on the loft until she was able to sublet it, and the Appellate Division remanded the case back to the trial judge to determine those damages and also to entertain any additional theories of recovery for the plaintiff.