Ch. 3 - taxes (2).pptx - Income Statements and Corporate Taxes Corporate Income Tax Rates Since 1993 Taxable Income $1 $50,000 $50,001 $75,000 $75,001

Ch. 3 - taxes (2).pptx - Income Statements and Corporate...

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Income Statements and Corporate Taxes
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Corporate Income Tax Rates Since 1993 Taxable Income Corporate Tax Rate $1 - $50,000 15% $50,001 - $75,000 25% $75,001 - $10 million 34% over $10 million 35% and $100,000 - $335,000 5% surtax $15m - $18.333 m 3% surtax
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other considerations... Dividend Income : 70% excluded from federal taxation for corporations. Operating losses : may be carried back 2 years or carried forward up to 20 years. Capital gains : taxed as ordinary income. Net capital losses : may be carried back 3 years or carried forward 5 years and applied against capital gains.
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Operating loss carryback 2013 2014 2015 $1,000,000 $1,000,000 ($1,600,000)
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Operating loss carryback 2013 2014 2015 $1,000,000 $1,000,000 ($1,600,000) $0 The firm receives a complete tax refund for 2013.
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Operating loss carryback 2013 2014 2015 $1,000,000 $1,000,000 ($1,600,000) $0 $400,000 $0 The firm receives a complete tax refund for 2013. They receive a partial tax refund for 2014.
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Operating loss carryforward 2013 2014 2015 2016 $1,000,000 $1,000,000 ($2,600,000) $1,000,000
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Operating loss carryforward 2013 2014 2015 2016 $1,000,000 $1,000,000 ($2,600,000) $1,000,000 $0 The firm receives a complete tax refund for 2013.
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Operating loss carryforward 2013 2014 2015 2016 $1,000,000 $1,000,000 ($2,600,000) $1,000,000 $0 $0 The firm receives a complete tax refund for 2013 and 2014.
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