In this case, any expense above net income would be considered to be above-the-line. Conceptually this makes sense, as the term “above-the-line” refers to all costs that must be incurred in order to produce a product or service. In this post, we will cover what above-the-line costs are, why they are used in profitability analysis, […]

ATL expenses are typically deductible from taxable income in the year they occurred, reducing your taxable profit. When you combine these with business tax credits, above-the-line deductions can lead to significant savings come tax season. In some cases, you can also carry these types of deductions forward to future tax years, providing even greater tax […]