pretax income


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Pretax Income

An individual's total income before he/she pays any income tax or other tax, but after he/she takes deductions. For example, suppose one's salary is $50,000. If the person takes $10,000 in tax deductions, his/her pretax income is only $40,000.
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pretax income

Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. Also called earnings before taxes, pretax.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Pretax income.

Pretax income, sometimes described as pretax dollars, is your gross income before income taxes are withheld.

Any contributions you make to a salary reduction retirement plan, such as a traditional 401(k) or 403(b) plan, or to a flexible spending account comes out of your pretax income.

The contribution reduces your current income and the amount you owe in current income taxes.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

pretax income

Income from an investment before income taxes.If there are significant tax advantages to an investment, such as low-income housing credits or bonus depreciation, the after-tax income will sometimes be larger than the pretax income.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Reported pretax income fell 73.6% to $26.7 million, impacted by special items and regular line items.
Thus, an auditor may ignore prior-period misstatements when evaluating audit findings if he or she concludes the risk of material misstatement due to combined-misstatement effects is not "unacceptably high." Reaching that conclusion, RST's auditor computes the aggregate likely misstatement of RST's pretax income as $150.
The Corporate & Institutional Banking unit also saw a decrease in pretax income, falling 7.9% to EUR514 million.
The Originations segment earned $32 million GAAP pretax income or $33 million adjusted pretax income, an increase of 32% from the prior quarter primarily attributable to higher volume and reduced expenses.
Adjusted Pretax Income was USD 4.1 million for the three months ended September 30, 2017 compared with USD 21.0 million for the three months ended September 30, 2016.
Although interest expense edged down 0.7% to $23.2 million and other income leapt 26.2% to $1.44 million, pretax income for the six months still fell faster than operating profit, retreating 16.6% to $35.6 million.
With that, AmeriSource reported pretax income of $1.20 billion versus a pretax loss of $201.3 million in the 2015 span.
The company said that for the quarter that ended 31 March 2005 it expects to report revenue totalling USD346m, operating income of USD22-27m and pretax income of USD3-8m.
Incremental pretax income resulting from a new credit card equals gross margin less discount fee less cost (income) of the cash float.
The pretax income comparison was positively impacted by increased net interest income of $6.81 million primarily due to rising lending rates, higher average loan and lease balances and the recognition of a $0.62 million unaccreted purchase discount from an early loan payoff.
Avis Budget Group announced that, based on preliminary data, it estimates that for the full-year ended December 31, 2017, revenues increased to approximately $8.85 billion, and it expects pretax income to be between $205 million and $215 million and Adjusted pretax income to be between $340 million and $350 million.