From the course: Finance Foundations: Income Taxes
Join today to access over 23,400 courses taught by industry experts.
Corporate income tax issues
From the course: Finance Foundations: Income Taxes
Corporate income tax issues
- Two interesting corporate income tax issues are first corporate income is double taxed, first, corporate income is double taxed, and second interest is deductible as a business expense for a corporation. Let's discuss each one of these issues. So, corporate income is subject to double taxation. Let me illustrate with a numerical example. Miles Company, a corporation, has income before any income taxes of 10 million dollars. In this simple example, the income tax rate is 40% on all income. on all income. Miles Company, the corporation, has to pay income tax at the corporate level. $10 million times the 40% tax rate means 10 million dollars times the 40% tax rate, means that the corporate income tax that the corporateincome tax is $4 million. is four million dollars. That corporate income tax That corporate income tax is given is given to the Government Taxing Authority, to the government taxing authority, leaving six million dollars leaving $6 million thatbelongs to the shareholders…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Kurse herunterladen und unterwegs lernen
Sehen Sie sich die Kurse auf Ihrem mobilen Gerät an, ohne eine Internetverbindung zu benötigen. Laden Sie Kurse mit Ihrer iOS- oder Android-App LinkedIn Learning herunter.