Future Income Tax


Also found in: Acronyms.

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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In the end, the policy represents a decision to maintain the path of Social Security benefits and pay for them out of future income taxes collected by the federal government.
We focus on the total taxes paid on total taxable income by asking: What is the effect of dividend smoothing on the present value of the individual's expected future income tax liabilities?
Can I give him an opportunity to restore his credibility on VAT VA and ask him to rule it out completely topayfor any future income tax cuts?" Mr Cameron said: "Our plans don't involve putting up taxes.
Operating loss carryforward $60,000,000 Deferred tax asset $23,000,000 Deferred tax asset: potential future income tax savings as a result of deducting the loss carryforward.
Not only are these rules complicated; they effectively convert the previously imposed estate tax and GST to the decedent's estate into a potential future income tax to the decedent's beneficiaries or heirs.
The company also recorded a future income tax recovery of CAD0.06m for the three months ended 28 February 2010.
Future income tax rebates will also be affected if they are worded similarly to the Economic Stimulus Act of 2008.
*** Net income for fiscal 2003 reflects a $7 million charge for an adjustment to future income tax balances.
With the lockstep, any future income tax sharing powers conferred on the National Assembly for Wales will be unusable.
Another important factor to consider before converting is the taxpayer's current and expected future income tax brackets.
This loss is attributed to higher corporate and general administrative expenses due to growth in corporate activities, a USD10.4m 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.
When assessing their net worth or determining whether a plan will provide enough assets to retire comfortably, investors should discount assets held in traditional IRAs to properly include them at their after-tax value, based upon their expected future income tax rate at the time funds are distributed.

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