Do life insurance proceeds on an officer’s life insurance policy result in a permanent or temporary tax difference?
Life insurance proceeds from the death of an executive or corporate officer will be included for calculating net income on the financial statements but will be excluded when calculating taxable income. Therefore, this item will always result in a permanent difference.
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Are fines, bribes, or kickbacks considered a permanent or temporary tax difference?
Fines, bribes or penalties resulting from the violation of laws and regulations will be recognized as expense items for calculating net income but will not be included as deductible for calculating taxable income. That means this item is considered a permanent difference.
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Is a dividend received deduction for corporation a permanent or temporary tax difference?
Dividends received deductions are deductions that are deductible for calculating taxable income for certain corporations. Essentially, a percentage of dividends received by that corporation are deductible (not included) for calculating taxable income. Dividends received deductions are not considered as expense items for calculating net income. This will always result in a permanent tax difference.
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Is tax-exempt interest a permanent or temporary difference?
Differences that result from interest income being earned from an investment made in state or municipal bonds. represents a permanent difference. These income items will be included in calculating pretax income for financial statement net income but will be excluded for calculating taxable income. That means that this is an example of a permanent difference.
Are fines, bribes, or kickbacks considered a permanent or temporary tax difference?
Fines, bribes or penalties resulting from the violation of laws and regulations will be recognized as expense items for calculating net income but will not be included as deductible for calculating taxable income. That means this item is considered a permanent difference.
Is a dividend received deduction for corporation a permanent or temporary tax difference?
Dividends received deductions are deductions that are deductible for calculating taxable income for certain corporations. Essentially, a percentage of dividends received by that corporation are deductible (not included) for calculating taxable income. Dividends received deductions are not considered as expense items for calculating net income. This will always result in a permanent tax difference.
Is tax-exempt interest a permanent or temporary difference?
Differences that result from interest income being earned from an investment made in state or municipal bonds. represents a permanent difference. These income items will be included in calculating pretax income for financial statement net income but will be excluded for calculating taxable income. That means that this is an example of a permanent difference.
