Future Income Tax

Future Income Tax

In accounting, a way for a company to avoid taxes following years in which it had a net operating loss. If a company deducts more than its net income in a given tax year, it may take the difference between the deduction and the net income (a negative number) and apply it as a deduction on taxable income for up to 7-10 years. For example, if a company loses $500,000 in one year, and makes $1,000,000 the following year, it may only be liable for a $500,000 profit.
References in periodicals archive ?
Future income tax expenses are computed using the appropriate year-end statutory tax rates applied to the future pre-tax net cash flows from proved coalbed methane reserves, less the tax basis of Far East Energy.
An enterprise recognizes a deferred tax asset or a deferred tax liability for the future income tax effects of the difference between an asset's or liability's tax basis and its reported amount in the financial statement.
The restatement of the Company's consolidated financial statements will impact the Company's net earnings and future income tax liabilities for the years ended December 31, 2009 and 2008.
tax group was no longer necessary to maintain the remaining portion of its future income tax asset related to capitalized losses within the U.
Some advisers recommend that the trust donor explicitly waive the right to recover the donor's future income tax payments from the trust fund in the trust agreement.
They use stochastic techniques for certain elements of the analysis, such as investment performance and mortality, but they don't take into account other kinds of risks or variations in life, such as future income tax laws or having a child or grandchild move back home as a dependent," noted Still River President, Chuck Yanikoski.
3million for the recognition of previously unrecognized future income tax assets in the United States, an extraordinary gain of US$3.
An expense of $36,000 to the Company's future income tax benefit, for income taxes which would otherwise have been payable, was recorded during the fourth quarter, compared to a gain of $37,000 in 2004.
increase to the Trust's future income tax liability and a
In 2004, a recovery of income taxes in the amount of $336,000 was recorded to recognize the future income tax benefit arising from income tax losses carried forward from prior years.
This increase in net loss of $1,774,256 or 76% is largely due to the fact that the Company did not recognize a future income tax recovery in the current quarter, compared to the future income tax recovery of $2,729,422 that was recognized in the same period in the previous year.
The tables below show our current and future income tax expense.

Full browser ?