For this example, CASE A, the computed
escape time stabilizes as the time step in the integration scheme decreases.
1.167(n)-3(b), FTI is determined at the end of the year in which the income forecast property is placed in service; it is computed
based on all the information available at that time.
Although the mileage allowance is computed
on a basis similar to that used in computing the driver's compensation and, thus, is paid at a variable mileage rate, the percentage of the tag rate paid as a mileage allowance remains fixed throughout the calendar year.
The principal concerns, therefore, become determining the amount on which interest is to be computed
and the beginning date and ending date of the interest period.
A per-diem allowance for travel expenses that is "computed
on a basis similar to that used in computing the employee's wages or other compensation (e.g.
If elected, the taxpayer uses a three-tier, fixed-base percentage credit rate of (1) 1.65%, when a taxpayer's current-year research expenses exceed a base amount computed
with a 1% fixed-based percentage, not to exceed a base amount computed
with a 1.5% fixed-base percentage; (2) 2.2%, when a taxpayer's current-year research expenses exceed a base amount computed
with a 1.5% fixed-base percentage, not to exceed a base amount computed
with a 2% fixed-base percentage; or (3) 2.75%, when a taxpayer's current-year research expenses exceed a base amount computed
with a 2% fixed-based percentage.
After three years of performing actual computations, a new weighted-average HAR is computed
and used for the next qualifying period.
Rather (in contrast to determining Federal income tax liabilities), determinations of estate tax may be computed
by taking into account later expenses, even expenses incurred at or after a trial held for determining an estate's true liability (see, e.g., Est.
How is the tax computed
? The election provides that the "person from whom the taxpayer acquired the intangible" (e.g., a transferor partnership) must pay a tax on the gain recognized on the disposition which, when added to any other income tax on such gain under this title, equals such gain multiplied by the highest rate of income tax applicable to such person under the Code.
Commissions due and owing the DISC were computed
under the 50/50 combined taxable income (CTI) method.
1366[d] provides that an S shareholder may not deduct losses in excess of the sum of stock and debt basis as computed
However, it is possible that a taxpayer will not be penalized for a quarterly installment payment in which modified AGI was computed
using the preceding year's passthrough entity income if it is not known until later in the year that the taxpayer's ownership interest reached 10% during the year.
1.163(j)-3 discusses the computation of the ratio and specifically defines the terms "debt" and "equity." For purposes of these rules, "debt" means liabilities computed
on a tax basis, which presumably excludes reserves and contingent liabilities that are recognized for financial but not tax accounting purposes.
By giving preparers responsibility for checking computed
returns and clearing diagnostic comments, their understanding of tax compliance quickly increases.
The estate tax rate is computed
by adding the sum of the taxable estate and the amount of the adjusted taxable gifts, credited by the amount that would have been payable under the gift tax.