Did any catch the errors on page 18-1 for C-Corp tax rates for 2005? The entire schedule is WRONG.
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The Tax Rate Schedule is Correct
The “C Corporation Income Tax Rate Schedule, Form 1120,” shown on page 18-1 of TheTaxBook™, Deluxe Edition, is correct.Originally posted by R-Max
The method of computing tax as shown in our publication eliminates steps and results in a faster calculation than the IRS-published method, and will result in the exact tax amount.
For example, assume C corporation taxable income of $125,000. Under our method as shown on page 18-1, the computation has two steps.
Step One: $125,000 x 39% = $48,750
Step Two: $48,750 – $16,750 = $32,000
Under the IRS method, the computation has three steps.
Step One: $125,000 - $100,000 = $25,000
Step Two: $25,000 x 39% = $9,750
Step Three: $9,750 + $22,250 = $32,000
Our computations will exactly equal the IRS tax rate schedules regardless of the amount of corporation taxable income.
I hope this is helpful.
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