### Question
How does Private Foundations define adjusted net income?


### Answer
Under *26 U.S.C. § 4942*, **adjusted net income** is defined as:

> the excess (if any) of—



(A) the gross income for the taxable year (determined with the income modifications provided by paragraph (2)), over



(B) the sum of the deductions (determined with the deduction modifications provided by paragraph (3)) which would be allowed to a corporation subject to the tax imposed by section 11 for the taxable year

#### Citation:
  - *26 U.S.C. § 4942*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter A-Private Foundations**

