- posted
14 years ago
Why does a company posting losses (i.e. Vonage) pay taxes?
- Vote on answer
- posted
14 years ago
"2.7182818284590..." wrote
You would need to dig around and find out what makes up the tax number. It possible that the tax number is not just federal taxes, and as such, it's highly likely that states have not adopted some of the expensing stances (section 179, 50% expensing, etc) of the feds. So there would be cases that there would be state profits and state taxes but no federal income tax. It may be possible that Vonage is profitable in some states, but not in others, giving rise to state tax but no federal.
So one would have to have the drill-down numbers into what makes up the taxes figure to know the whys.