Total Revenue
Total Revenue is defined by the Texas Tax Code §171.1011 as those entered on specific lines from the entity’s federal tax return with certain reductions. For instance:
Corporations. For a taxable entity treated for federal income tax purposes as a corporation and utilizing Form 1120, Total Revenue is an amount computed by:
(A)Adding:
(i) the amount reportable as income on line 1c
(ii) the amounts reportable as income on lines 4 through 10; and
(iii any total revenue reported by a lower tier entity as includable in the taxable entity’s total revenue under §171.1015(b)
(B)Subtracting:
(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included in Subsection (c)(1)(A) for the current reporting period or a past
reporting period;
(ii) to the extent included in Subsection (c)(1)(A), foreign royalties and foreign dividends, including amounts determined under §78 or §§951-964, Internal Revenue Code;
(iii) to the extent included in Subsection (c)(1)(A), net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes;
(iv) allowable deductions from Internal Revenue Service Form 1120, Schedule C, to the extent the relating dividend income is included in total revenue;
(v) to the extent included in Subsection (c)(1)(A), items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and
(vi) to the extent included in Subsection (c)(1)(A), other amounts authorized by this section;
Partnerships. For a taxable entity treated for federal income tax purposes as a partnership, an amount computed by:
(A) Adding:
(i) the amount reportable as income on line 1c, Form 1065
(ii) the amounts reportable as income on lines 4, 6, and 7, Form 1065
(iii) the amounts reportable as income on lines 3a and 5 through 11, Schedule K;
(iv) the amounts reportable as income on line 17, Internal Revenue Service Form 8825;
(v) the amounts reportable as income on line 11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F; and
(vi) any total revenue reported by a lower tier entity as includable in the taxable entity’s total revenue under §171.1015(b); and
(B) Subtracting:
(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included in Subsection (c)(2)(A) for the current reporting period or a past
reporting period;
(ii) to the extent included in Subsection (c)(2)(A), foreign royalties and foreign dividends, including amounts determined under §78 or §§951-964, Internal
Revenue Code;
(iii) to the extent included in Subsection (c)(2)(A), net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes;
(iv) to the extent included in Subsection (c)(2)(A), items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and
(v) to the extent included in Subsection (c)(2)(A), other amounts authorized by this section; or
Other Entities. For a taxable entity other than a taxable entity treated for federal income tax purposes as a corporation or partnership, an amount determined in a manner substantially equivalent to the amount for Subdivision (1) or (2) determined by rules that the comptroller shall adopt. There are quite a few other deviations with which the CPAs at Clay Thomas, PC may assist.