In 1999, he and his wife are US residents. Controlled foreign corporation . ABC Company buys products from their US manufacturing company and sells them around the world. ABC is a controlled foreign corporation, and Ms. C and her friends must include the income ABC Company earns from many of these sales in their US taxable incomes even if the tax-haven company pays no dividends to them. Deductions from Income.
Various items are deductible from income if specifically authorized by statute.
The following are the most common. Losses from capital transactions. Itemized deductions or the standard deduction. Itemized deductions include state and local income taxes, real estate taxes, donations to US charitable organizations, residential and investment interest expenses, and employee business expenses including unreimbursed expenses for travel away from home. The threshold amounts are adjusted annually for inflation.