Dictionary of Finance and Investment Terms: reachback
reachback
ability of a limited partnership or other tax shelter to offer deductions at the end of the year that reach back for the entire year. For instance, the investor who buys an oil and gas limited partnership in late December might be able to claim deductions for the entire year's drilling costs, depletion allowance, and interest expenses. Reachback on tax shelters was considered to be abusive by the Internal Revenue Service, and was substantially eliminated by 1984.
