Under What Condition May It Be to the Taxpayer's Advantage

question 26

Multiple Choice

Under what condition may it be to the taxpayer's advantage to take a deduction for total foreign taxes paid rather than a tax credit for foreign income taxes?

• A) If the foreign income tax rate is greater than the U.S. federal income tax rate
• B) If the foreign income tax rate is less than the U.S. federal income tax rate
• C) If foreign source income is less than domestic income
• D) If foreign taxes other than income taxes are substantial