Tax FEX Cheat Sheet.docx

Tax FEX Cheat Sheet.docx - Reconciliation of GAAP based net...

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Reconciliation of GAAP based net income to corporate taxable income (The reconciliation will begin with book net income) PD - not included in taxable income. Ex. – non-deductible expenses, exempt income, non-expenditure tax deductions TD – timing differences when recognized in financial Income and TI, results in DTA/L. Ex. – bad debts, depreciation, and warranty liability DTA – TI > BI. Ex. – expense on books, but not deductible, unfavorable. DTL – TI < BI, EX. – expense deducted for tax, not on books, favorable 1. NI 2. Add: Tax Expense on books 3. Add or subtract each difference 4. Equals TI. Book Tax Expense = (NIBT +/- PD) * Tax Rate Tax Liability = TI * Tax Rate, Change in DT = TDs * Tax Rate. PD M&E, Municipal bond interest, penalties and fines, dividends TD accrued liabilities, depreciation, estimates (warranty costs, A for BDs, tax credits) Individual Taxpayer’s AGI, Taxable Income and Tax, 1. Calculate total income
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  • Fall '15
  • monroe
  • Taxation in the United States, Corporate Taxable Income, Book Net Income, LT capital

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