Editing Taxation in the United States (section)

===Differences between book and taxable income for businesses===
In the United States, taxable income is computed under rules that differ materially from [[Generally Accepted Accounting Principles (United States)|U.S. generally accepted accounting principles]]. Since only publicly traded companies are required to prepare financial statements, many non-public companies opt to keep their financial records under tax rules. Corporations that present financial statements using other than tax rules must include a detailed reconciliation<ref>{{cite web|url=https://www.irs.gov/pub/irs-pdf/f1120sm3.pdf|title=Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More|work=Schedule M-3 (Form 1120)|publisher=[[United States Department of the Treasury|Department of the Treasury]] [[Internal Revenue Service]]|date=December 2019|access-date=December 20, 2023}}</ref> of their financial statement income to their taxable income as part of their tax returns. Key areas of difference include depreciation and amortization, timing of recognition of income or deductions, assumptions for [[cost of goods sold]], and certain items (such as meals and entertainment) the tax deduction for which is limited.