If There Is Not Enough Gross Tax Liability to Use

question 96

Multiple Choice

If there is not enough gross tax liability to use the foreign tax credit,

• A) it is carried back 3 years or forward 5 years
• B) it is carried back 2 years or forward 20 years
• C) it expires unused
• D) it is carried back 1 year or forward 10 years

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Definitions:

Employer's Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, such as social security and Medicare taxes.

Warranty Work

Repair or replacement services provided at no charge, covered under a product’s warranty, usually to fix defects or malfunctions within a specific period after purchase.

Sales Price

The amount a customer pays or is charged for a product or service.

Part Replacement

The process of substituting a defective, broken, or outdated component of a machine or system with a new one.