Comprehensive Tax Allocation

DEFINITION of 'Comprehensive Tax Allocation'

An accounting term that describes a form of "interperiod" tax allocation, a method of income analysis. It signifies a means of quantifying the net effect of taxation upon all book income transactions within a given period, such as a fiscal year, measuring after-tax income.

BREAKING DOWN 'Comprehensive Tax Allocation'

Comprehensive tax allocation does not take into account whether the period being analyzed is entirely within a single calendar or fiscal tax year. For example, if a company wanted to know what its after-tax income was for a certain period, such as from August of one year to March of the following year, then comprehensive tax allocation would be used to see what the effects of taxation are on the book income received during that period.

RELATED TERMS
  1. After-Tax Return

    The return on an investment including all income received and ...
  2. Future Income Tax

    Income tax that is deferred because of discrepancies between ...
  3. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  4. Income Tax Payable

    A type of account in the current liabilities section of a company's ...
  5. Franked Income

    After-tax investment income that is distributed by one U.K. company ...
  6. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
Related Articles
  1. Personal Finance

    The Impact Of U.S. Corporate Taxation On Investment Decisions And CFC Transfer Pricing

    To avoid taxation, businesses do careful tax planning, taking into consideration more than one country's taxation system.
  2. Personal Finance

    Explaining Double Taxation

    Double taxation refers to income taxes being imposed twice on the same source of earned income.
  3. Investing

    Understanding Deferred Income Tax

    Deferred income tax is a liability on a balance sheet that reflects income tax that is allocable to the current period, but has not yet been paid.
  4. Personal Finance

    What's a Marginal Tax Rate?

    The marginal tax rate is based on a progressive tax system, where tax rates for an individual will increase as income rises. This method of taxation aims to fairly tax individuals based upon ...
  5. Personal Finance

    Explaining Taxable Income

    Taxable income is the net of gross income and allowable deductions.
  6. Personal Finance

    Comparing Long-Term vs. Short-Term Capital Gain Tax Rates

    Learn about the difference between short- and long-term capital gains and how the duration of your investment can impact your tax liability.
  7. Personal Finance

    3 Federal Income Tax Facts You Didn't Know

    Learn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
  8. Personal Finance

    How Will Raising Taxes on the 1% Make a Difference?

    What would happen if taxes were raised (even by a small degree) on the highest earners?
  9. Personal Finance

    Why America's Taxes Are Too Low

    The solution to America's economic woes may not be in lowering taxes further, but may, in fact, lie in increasing them.
  10. Personal Finance

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
RELATED FAQS
  1. What is the difference between comprehensive income and gross income?

    Learn the specifics of both comprehensive income and gross income, how they are legally defined, and the primary difference ... Read Answer >>
  2. What are the differences between comprehensive income and other comprehensive income?

    Learn what the accounting terms "comprehensive income" and "other comprehensive income" can tell an investor's financial ... Read Answer >>
  3. How does the marginal tax rate system work?

    The marginal tax rate is the rate of tax that income earners incur on each additional dollar of income. As the marginal tax ... Read Answer >>
  4. How can I lower my effective tax rate without lowering my income?

    Discover how to reduce your effective tax rate without losing income by maximizing adjustments and deductions, earning tax-free ... Read Answer >>
  5. What is the difference in tax liability between gross income and other kinds of income?

    Find out how the U.S. government taxes worker's earnings, whether it is gross income or income exempted or excluded from ... Read Answer >>
  6. What is the difference between a state income tax and a federal income tax?

    Learn the difference between state income tax and federal income tax based on tax rates, deductions, tax credits and taxable ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  5. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  6. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
Trading Center