Deduction for state and local taxes – Credit or deduction for certain foreign taxes – Deduction for dividends received by corporations to prevent triple taxation Equity Considerations (slide 2 of 4) • Wherewithal to Pay concept – Defers taxation when a taxpayer’s economic position has not changed – e.g., Exchange of assets might result in gain but no cash, so some tax may be deferred Equity Considerations (slide 3 of 4) • Annual accounting periods – In some cases, e.g., start-up businesses,…
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