Tax Assumption For Business Plan

[themoorethemerrier]

I'm trying to complete my cash flow statement, but I'm not sure how to assume the income taxes for the start up year. 30% of the gross income? Will that be the same for year 2 and 3?

Thank youuuuu!!!

[themoorethemerrier]

NET INCOME! Whoops - that would be a BIG mistake. So 30% of my net profit?

[TomCopeland]

Estimated Taxes

Estimating that your taxes will be about 30% of your profit (net income) is reasonable. It can vary depending on your own family's circumstances (# of children, medical expenses, other deductions and credits). But 30% is a reasonable number to use for planning purposes.

[themoorethemerrier]

Thank you, Tom! Just wanted to check.