With current income tax rates at their lowest levels in nearly 50 years, does it make good "tax sense" to take an income tax deduction based on policy premiums at today's lower rates, thereby creating a future income tax
liability based on policy cash values at tax rates that almost certainly will be higher?
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.
An NOL can be used in two ways: it can be carried (1) back up to two years, to generate a refund (with the exception of the three-year carryback for casualty-loss-related NOLs described above); or (2) forward for up to 20 years, to reduce future income tax
The balance sheet approach requires an enterprise to recognize as a deferred tax asset or a deferred tax liability the future income tax
effects of the difference between the financial statement carrying amount of an asset or liability and its tax basis.
4m variation in the foreign exchange loss, lower interest income despite higher cash balances on hand, and lower future income tax
recoveries from the renunciation of exploration expenses to flow-through subscribers.
If Warren contributes low-basis assets, there will be more BIG and built-in future income tax
Projections should be made using reasonable earnings assumptions for clients' current retirement balances and assumptions about their future income tax
brackets under different life expectancy scenarios.
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.