Accumulated Taxable Income Law and Legal Definition
Accumulated taxable income refers to income of a corporation. This income is adjusted for certain items such as excess charitable contributions. It is reduced from the dividends paid deduction and the accumulated earnings credit. Accumulated taxable income also serves as the base upon which the accumulated earnings tax is imposed.
Under accumulated taxable income, aggregate amount allowable as a deduction under are the following:
1. the nonrecaptured capital gains deductions, or
2. the amount of the accumulated earnings and profits of the corporation as of the close of the preceding taxable year.