Pretax Income

Definition: Pretax Income (Income Before Tax) is the income statement line immediately above the income tax provision. It is the starting point for computing t…

Equation

Pretax Income = Revenue − All Expenses Except Income Tax

Pretax Income (Income Before Tax) is the income statement line immediately above the income tax provision. It is the starting point for computing taxable income (with adjustments for permanent and temporary differences).

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