Which of the Following Tax Rules Applies to an Excess

question 68

Multiple Choice

Which of the following tax rules applies to an excess foreign tax credit (FTC) that arises in 2017?

• A) The excess FTC is first carried back to 2016 and any excess is carried forward for 10 years.
• B) The excess FTC is first carried back to 2015, then 2016, and any excess is carried forward for 20 years.
• C) The excess FTC is first carried back to 2014, then 2015, then 2016, 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:

Dizygotic Twins

Dizygotic twins, also known as fraternal twins, are produced from the fertilization of two separate eggs during the same pregnancy, sharing about 50% of their DNA.

Fraternal Twins

Siblings born at the same time from separate eggs fertilized by different sperm cells, sharing 50% of their DNA.

One-Child Policy

A government-imposed limit of one child per family, famously utilized by China from 1979 to 2015 to control population growth.

Birth Rate

A statistical measure representing the number of live births per 1,000 people in a population per year.