Which of the Following Tax Rules Applies to an Excess

question 31

Multiple Choice

Which of the following tax rules applies to an excess foreign tax credit (FTC) that arises in 2018?

• A) The excess FTC is first carried back to 2017 and any excess is carried forward for 10 years.
• B) The excess FTC is first carried back to 2016, then 2017, and any excess is carried forward for 20 years.
• C) The excess FTC is first carried back to 2015, then 2016, then 2017, and any excess is carried forward for 5 years.
• D) The excess FTC is carried forward 10 years, with no carryback allowed.

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Definitions:

Ulnar Artery

The ulnar artery is a major blood vessel of the forearm that runs from the brachial artery to the hand, supplying blood to the muscles of the forearm and the hand.

Baroreceptor Mechanism

A reflex mechanism using sensory receptors in the blood vessels to detect changes in blood pressure and stimulate responses to maintain homeostasis.

Chemoreceptor Mechanism

A physiological process involving receptors that detect changes in the chemical concentration of substances (such as oxygen or carbon dioxide) in the body and signal these changes to the nervous system.

Capillary Permeability

The ability of substances to pass through the tiny blood vessels called capillaries, which is critical for the exchange of oxygen, nutrients, and waste products between blood and tissues.