From the course: Finance Foundations: Income Taxes

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Examples of business tax breaks

Examples of business tax breaks

From the course: Finance Foundations: Income Taxes

Start my 1-month free trial

Examples of business tax breaks

“

- Remember that a tax break is a provision in the tax rules that permits a taxpayer to legally pay that permits a tax payer tolegally pay less income tax. less income tax. Let's talk about some taxbreaks enjoyed by US businesses. Let's talk about some tax breaks enjoyed by U.S. businesses. US based corporations are notrequired to pay US income tax U.S.-based corporations are not required to pay U.S. income tax on much of the income that they on much of the income that they generate generate outside the United States. outside of the United States. This is a tax break that is not allowable for for individual US citizens. individual U.S. citizens. An individual U.S. citizen is taxed on on her or his world wide income, her or his worldwide income, meaning that she or he meaning that she or hemust pay US income tax must pay U.S. income tax on income earned anywhere on income earned anywhere in the world. in the world. In contrast, U.S. corporations don't have to pay tax on much of their…

Contents