Annualized Income

Annualized Income

The actual income and expenditures for a particular period multiplied by the ratio of 12 to the number of months in the period. For example, if annualizing the income for the period January 1 though May 31, multiply the income for the period by 2.4 (12 divided by 5).
References in periodicals archive ?
1.66552(f)(2)(v), a proportionate amount of a taxpayer's estimated annual depreciation (and/or amortization) expense is taken into account in determining the annualized income installment.
9233001 (April 28, 1992), the IRS asserted a large corporation is not required to include subpart F income when computing annualized income installments for its estimated tax payments.
90% of the tax for the current year based on annualizing income (annualized income safe harbor).
Because the increased estimated tax payments demanded greater precision in preparing the estimates, the estimated tax penalty was restructured and the annualized income exceptions expanded.
A brief annualized income and expense summary, which combines the results from Parts "A" and "B" of the program, is shown in Table 5.
Further, to use the annualized income method, the LLC or LLP must generate adequate interim financial statements for member/ partner use.
Before the EUCA amendments, a taxpayer with income that varied during the year could lower or eliminate a required estimated payment by using the annualized income installment method.
2017 Owner to prove annualized income. Owner states he pays installer sub-contractors approximately $50,000.00 per month.
For trusts, two little-known rules exist for calculating quarterly estimated tax payments based on the annualized income method, with one applying at the trust level and the other being available to a trust beneficiary.
Further, if XYZ were a large corporation, it would not be eligible to file Form 1138 unless it annualized income. In general, a large corporation has to pay 100% of its current tax liability in four installments.
did not have net recognized built-in gain for purposes of making estimated tax payments until the third quarter, so it can use the annualized income method (described in the following paragraph) and make estimated payments in the following amounts in 1997: April 15 $ -- June 15 -- September 15 ($5,000 X 75%) 3,750 December 15 ($5,000 X 100% -- $3,750) 1,250 Total payments required $5,000