carrying charge


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Related to carrying charge: Carrying Charge Market

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 ?
Even when they use WACC to calculate the inventory capital carrying charge, companies often make the mistake of adding the before-tax percentage inventory noncapital carrying costs (like our example of 10 percent) to the after-tax cost of capital (say 9 percent) to get the total carrying cost (19 percent).
According to proposed regulations, for purposes of the straddle interest and carrying charges rules "personal property" means property, whether or not actively traded, that is not real property; for this purpose a position in personal property may itself be property.
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.
Chatterjee was carrying charges of with culpable homicide not amounting to murder on his head.
For more than a year, we had to pay mortgage fees and carrying charges on an apartment we no longer needed or wanted.
The agency cited the extremely strong market value per capita, the city's very diverse tax base, very strong available fund balance, and low debt service carrying charges as the main propellers of the upgrade.
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.
Elevator co-op has full-time superintendent, laundry room and low carrying charges.
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.
2 million fourth pledge of carrying charges for The Ansonia, a 398-unit condominium located at 2109 Broadway in Manhattan.
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.