Nextel claimed the NLC deduction cap favored small taxpayers, those with taxable incomes of $3 million or less, because those taxpayers having NLCs in excess of their taxable income could reduce their taxable income to $0.
Like most states, Pennsylvania allows taxpayers generating net operating losses to carry unused losses over to future years to reduce the amount of taxable income subject to Pennsylvania s corporate net income (CNI) tax.
As noted above, the basic approach followed in this study was a comparison of the taxable incomes of individual taxpayers who reside in different states and confront unequal state income tax rates.
Mean taxable incomes according to income grouping in the high- and low-tax state samples are reported in Table 1.
Beginning in 1994, when individuals lose the "below the line" deductibility of club dues, certain lobbying expenses and 50% of meals and entertainment deductions, their regular taxable incomes
will be closer to their AMTI.
For 1993, the income tax rate increases to 36% for married couples with combined taxable incomes
of more than $140,000; for single individuals, this rate applies to taxable incomes
of more than $115,000 (for heads of households, taxable income
must exceed $127,500).
Other unitholders, who purchased their units after 1985, have lower taxable incomes
to report from the partnership.
1, 1993, apply to married taxpayers with taxable incomes
in excess of $140,000, and all individuals with taxable income
in excess of $250,000, respectively.
A 36% tax bracket will be added to the existing three and will apply to joint filers with taxable incomes
of more than $140,000 and to single filers with taxable incomes
951 to include their portion of the CFC's subpart F income in their taxable incomes
did not include any municipal bond interest earned by that CFC.
25) Thus, for the taxpayer, the taxable income
limit is the dollar amount derived from the total taxable incomes
or losses from all businesses the taxpayer actively conducts, and not just from the business that had purchased the Sec.
The 35 cents per unit special distribution, combined with regular quarterly distributions totaling 40 cents per unit paid in 1999, reflects management's estimate of the 1999 tax liability for those taxable unitholders with the highest taxable income
, and the highest federal and California tax rate.