NET OF TAXES Definition

Bookmark and Share

NET OF TAXES means the effect of applicable taxes (usually income taxes) has been considered in determining the overall effect of an item on the financial statements. The phrase is used when a company has items that must be disclosed in a separate section. Each such item should be reported net of the applicable taxes.

Learn new Accounting Terms

COMFORT LETTERS see KEEP-WELL AGREEMENTS.

CAPITAL GAIN is the excess of selling price over purchase price, which may be given special treatment for tax purposes provided the sale takes place more than a given number of months after purchase.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.