Interactive Book-to-Tax Reconciliation Tool

Bridge the Gap Between Your Books and Your Tax Return

Use this calculator to reconcile your financial statement (book) income to your taxable income by adjusting for permanent and temporary differences.

Step 1: Starting Point

Net Income (Loss) per Books

Step 2: Additions to Book Income

Federal Income Tax Expense

50% of Business Meals (Non-Deductible Portion)

Penalties & Fines

Book Depreciation

Book Warranty Expense (Accrued)

Step 3: Subtractions from Book Income

Tax-Exempt Interest (e.g., Muni Bonds)

Tax Depreciation (MACRS)

Tax Warranty Costs (Paid)

Prepaid Rent/Royalties (Taxable when received)

Reconciliation Summary

Taxable Income

$0