Which of the Following Tax Rules Applies to an Excess

question 30

Multiple Choice

Which of the following tax rules applies to an excess foreign tax credit (FTC) that arises in 2014?

• A) The excess FTC is first carried back to 2013 and any excess is carried forward for 10 years.
• B) The excess FTC is first carried back to 2012, then 2013, and any excess is carried forward for 20 years.
• C) The excess FTC is first carried back to 2011, then 2012, then 2013, 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:

Founder

An individual who establishes and builds an organization or a company from the ground up.

Public Company

A corporation whose shares are publicly traded on stock exchanges, allowing for widespread ownership among general investors.

Advantages

Competitive benefits or strengths that a business has over its competitors, which can be leveraged for success.

Impatience

A lack of patience or an eagerness to act or get results quickly, often without waiting for the natural course of events.