### Question
How is the term adjusted taxable income defined?


### Answer
The term **adjusted taxable income** is defined in *26 U.S.C. § 163* as the following:

> the taxable income of the taxpayer—


(i) computed without regard to—


(I) any deduction allowable under this chapter for the net interest expense,


(II) the amount of any net operating loss deduction under section 172,


(III) any deduction allowable under section 199, and


(IV) any deduction allowable for depreciation, amortization, or depletion, and


  

(ii) computed with such other adjustments as the Secretary may by regulations prescribe

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

