taxable income


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Taxable Income

Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer.

Cross-references

Income Tax.

taxable income

see INCOME TAX, TOTAL INCOME.
References in periodicals archive ?
Example 1: Jane and Keith Larsen, who file a joint tax return, wind up with $250,000 of taxable income in 2019.
* Heads of households: Zero for taxable income not exceeding $51,700; 20% for taxable income over $452,400
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.
The proper tax rate is applied to taxable income to determine the tax (see Appendix A).
According to section 987's legislative history, taxpayers should adjust taxable income or loss to the extent the value of the local currency at the time of remittance differs from the value when the amount was earned or otherwise recorded in the QBU's capital.
But Resona Holding conducted the upward revision in the net profit forecast for the first half of fiscal 2006, as the firm has decided that it can now book five years of taxable income as its DTA sum, just as other major banks do, it said.
Finally, major donors may choose to give the full $100,000 per year and avoid an additional $100,000 of reportable taxable income. This may result in substantial income tax savings not otherwise available due to deduction floors and phase-outs at higher income levels.
1.55-1(a), which states: "Except as otherwise provided by statute, regulations, or other published guidance issued by the Commissioner, all Internal Revenue Code provisions that apply in determining the regular taxable income of a taxpayer also apply in determining the alternative minimum taxable income of the taxpayer." As the Tax Court found that no statute, regulation or other published guidance purported to change the treatment of capital losses for AMT purposes, it held that the Secs.
Burke referred to IRC section 703(a), which requires a partnership's taxable income to be computed in the same manner as an individual's taxable income, and cited a series of cases in which individuals did not have to report taxable income that had restrictions on the money's use.
In the last few years, the Internal Revenue Service (IRS) has provided specific guidelines for qualified tenant construction allowances not to be treated as taxable income.
To counteract those loopholes, the AMT requires taxpayers to add back certain deductions (including state and local income taxes, property taxes, and some medical or investment expenses) and adjustments that are allowed when calculating a taxpayer's regular taxable income.
ABSTRACT: In this paper, we provide evidence consistent with nonprofit organizations managing their taxable income to near zero by examining the cross-sectional distribution of taxable income as reported on IRS form 990-T.