By way of comparison, approximately 50% of the SE tax is deductible in computing the actual SE tax liability; in addition, 50% of SE tax is deductible as an adjustment to income
The GAO concluded that these limitations "may have contributed to the relatively large percentage of audits in which the use of (these techniques) resulted in no adjustment to income
." Interestingly, the GAO is concluding that the Service may be underauditing in this area because of the lack of guidance and control, while the AICPA has been worried that the IRS might be overauditing for the same reasons!
Not only will the taxpayer usually be required to make an earlier adjustment to income
(i.e., in the first year under examination rather than the year in which the change is requested), but because Rev.
1.1275-4(b)(3)(iv), differences between actual and projected contingent payments are taken into account as adjustment to income
when the contingent payment is made (earlier if the contingent payment becomes fixed six months or more before payment).
Later, an "expeditious procedure" permitted for an accounting change of cash to accrual can facilitate a possible six-year spread of the adjustment to income
The per-share earnings included an 11-cent per-share adjustment to income
tax expense related to U.S.
Following the enactment of the 'Tax Cuts and Jobs Act' (Tax Act) as signed into law on December 22, 2017, the bank had reported an additional adjustment to income
tax expense totalling USD6.9m in the fourth quarter of 2017, which had a material impact on net income for both the year and quarter ending December 31, 2017.
As mentioned above a $447 thousand adjustment to income
tax expense was recorded for revaluing deferred tax assets for the new tax law.
The presumption of abuse could be rebutted "only be demonstrating extraordinary circumstances that require additional expenses or adjustment of current monthly total income." (68) The debtor would be required to itemize and document each additional expense or adjustment to income
and provide a detailed explanation of the extraordinary circumstances making the expenses "necessary and reasonable." (69) Both the debtor and the debtors attorney would be required to attest under oath to the accuracy of that information, and the presumption would be rebutted only if the additional expenses or adjustment to income
caused the debtor to pass the means test.
(2.) Historical-cost direct investment income excludes capital gains and losses and the current-cost adjustment to income
Also, this deduction is taken as an adjustment to income
, reducing your AGI.
The partnership cannot take a deduction, even for interest, for any payment it makes; (49) but, presumably, after a partner's basis is increased for its share of any adjustment to income
, the partner's basis is reduced for the share of the payment made.