Question

Calculate TN Franchise and Excise tax: Given the following: Book value of property 3000.000 Real estate rental Net Worth Federal taxable income Deduction for Th tax taken for federal Industrial Machinery credit Jobs credit Quarterly estimated payments25.000 each Prior vear overpayment no refund cläimed apply to 2018 10,000/year 2,500,000 1,200,000 60,000 500 1.500 10.000 Eal culate franchise and excise taxes and amount of payment or refund due (show calculations

Answer 1

Franchise Tax = 25% of $100, of tax payer's net worth

net worth= $2,500,000

Franchise Tax = 25% * $2,500,000

= $625,000

Excise Tax = 6.5% of federal Taxable income plus minus adjustments required.

Federal taxable income= $1,200,000

Deductions for Tn tax taken for fedral =$60,000

Excise Tax = 6.5% OF ( $1,200,000 - $ 60,000)

= $ 74,000