TAX 9866 Lecture Notes - Lecture 38: Double Taxation
Document Summary
Key vocabulary words: (will come up on final exam: federal taxable income. States for most part take a shortcut in calc what is taxable income base for corporation. By taking a shortcut they eliminate 10,000pgs of statutes/regulations by, as a starting point, adopting definition of federal taxable system. Don"t define fed taxable income; rely on federal law and instead modify. Federal taxable income (at state level, adoption raises wrinkles) Nj conforms to irc on july 1 2017: whatever fed law was on that date; thats starting point for nj calc of. Fed taxable income: changes made tonight will not be adopted by nj, but nj legislature could meet and adopt those changes as a modification to state taxable income or they can change conformity date/modifications. When issue factual in nature: diff juries come up w/ diff outcomes tax cases usually don"t have jury"s. And if every state used prop, no fear of double taxation, so thats not the issue.
