Froogle | Glossary | 'Carve Out'

1. a contractually-designated service [provided by specific/separate providers] that is ancillary to the main program/plan. Carve-outs include – but are not limited to:

prescription drug coverage;

dental coverage;

cancer-specific services;

mental health services;

substance abuse treatment.

Carve-outs are often provided by a separate entity that specializes in that type of designated service.

2. the process by which a taxpayer separates a property’s present income stream from the property itself.

For example, if an owner of mineral property sells [for a certain number of years] a portion of the future mineral production [from such property], then the sale of such future production is a “carved out” interest in the mineral property.

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Froogle 1.1.1.7

CARVE OUT

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