Income Tax

[FlyTO]

Hi guys, I have always wondered how income tax is calculated.

Let's say I am in the US, its income tax is 30%.

Now every once in awhile, I will have lost money to income tax. For example in MT5,

Week 31/2004 Income of $86mil, Expense is $77mil = $9mil and NO income tax
Week 32/2004 Income of $93.5mil, Expense is $152mil = $-60mil and NO income tax
Week 33/2004 Income of $91mil, Expense is $88mil = $3mil BUT I also get hit with a $8mil Income Tax deduction.

Is it random? I know it doesn't mean much once Jan 15th comes along and you get the tax refund back, but these random tax hits that range from $500k to sometimes $10mil hurts on the daily activities of route scheduling and leasing planes.

Any thoughts and suggestions would be helpful
Kevin

[JumboShrimp]

Tax is charged monthly

[schro]

Your issue is with AWS's definition of a month. View by the month tab of the income statement and it'll help you understand what the tax is being charged on.

In general, a "month" in AWS ends at the end of the last week containing the last day of the month.

For example, suppose July 31st is a Monday, the end of July for tax purposes would then be August 6.

Also, loan repayments towards principal balance are not considered expense from a tax perspective.

[Sami]

You are comparing it incorrectly, since the taxes are charged monthly, and the tax is always deducted per previous month's balance. ie. tax from January is paid on Feb 10th (or around there), and is visible on February's income statement. And then in next January the full balance is checked.