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Future Income Tax

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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.


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Stewart said he won't rule out the possibility of a future income tax or other money measure.
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.
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.
 
 
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