### Question
Can you define what adjusted taxable income means?


### Answer
**Adjusted taxable income** is defined as the following in *26 U.S.C. § 280H*:

> taxable income determined without regard to—



(A) any amount paid to an employee-owner which is includible in the gross income of such employee-owner, and



(B) any net operating loss carryover to the extent such carryover is attributable to amounts described in subparagraph (A)

#### Citation:
  - *26 U.S.C. § 280H*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

