### Question
How does NORMAL TAXES AND SURTAXES define modified taxable income?


### Answer
Under *26 U.S.C. § 59A*, **modified taxable income** is defined as:

> the taxable income of the taxpayer computed under this chapter for the taxable year, determined without regard to—


(A) any base erosion tax benefit with respect to any base erosion payment, or


(B) the base erosion percentage of any net operating loss deduction allowed under section 172 for the taxable year

#### Citation:
  - *26 U.S.C. § 59A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VII-BASE EROSION AND ANTI-ABUSE TAX**

