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URL:  http://boards.fool.com/huh-ok-then-while-its-no-longer-that-important-16375774.aspx

Subject:  Re: Estimating State/Federal Taxes Date:  1/1/2002  9:35 PM
Author:  ripwest Number:  56596 of 121160


Huh. OK, then while it's no longer that important to me, I'm curious: how are you expected to do this, without running into the catch-22 I described earlier?


Back in the olden days when I was in my CPA practice and doing tax returns for companies who were active in many states, we had to use the trial and error method. As you say, first compute the federal with no state tax deductions, then plug those numbers in. It shouldn't take more than 3 rounds to zero in on the correct figures. Of course in the precomputer days with 15 to 20 states it was not an easy chore. You can be sure we tried to take every precaution that there would be no changes to income before we started the exercise. <g>

Rip

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