Corporate Taxable Income

Determining Corporate Income

A corporation calculates taxable income by determining gross income and subtracting allowable business deductions. Many rules resemble individual taxation, but corporations also have unique tax provisions.

Business revenue.
Investment income.
Ordinary and necessary business expenses.
Depreciation and amortization.
Special corporate deductions.

Note

Corporate taxable income forms the basis for calculating the corporation's federal income tax.

Summary

Corporate taxable income reflects business profits after allowable deductions.