1120-US: Purpose of allocating the various income brackets (FAQ)

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Question

What is the purpose of allocating the various income brackets?

Answer

Members of a controlled group are entitled to share one $25,000, $50,000, and $9,925,000 taxable income bracket amount. Each taxable income bracket uses a different tax rate to determine the total amount of income tax assessed for a given member of a controlled group.

Related topic: 1120-US: Controlled group FAQs

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