When claiming a benefit for foreign taxes on the tax return, which of the following statements...
Homework Answers
ANSWER : OPTION(C) A taxpayer may never claim both a credit and a deduction for foreign on the same return.
EXPLANATION: Taxpayer is allowed foreign tax credit for qualifying foreign taxes , and at the same time is allowed itemized deduction for non-qualifying foreign taxes.
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When claiming a benefit for foreign taxes on the tax return, which
of the following statements...
Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $400 of foreign tax...
Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $400 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $400 as a foreign tax credit. Their tax bracket is 24 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? The foreign tax deduction will result in a $ tax benefit...
A taxpayer may be eligible to claim a foreign tax credit on taxes paid to a...
A taxpayer may be eligible to claim a foreign tax credit on taxes paid to a foreign country on income that is: Choose one answer. a. Taxed only on the U.S. return. b. Taxed by a foreign country and the U.S. c. Taxed only by a foreign country. d. Nontaxable to the foreign country and the U.S
Question 57 of 75 Can a taxpayer claim both the foreign earned income exclusion and the...
Question 57 of 75 Can a taxpayer claim both the foreign earned income exclusion and the foreign tax credit? O No, the taxpayer must choose one tax benefit or the other. O Yes, but the taxpayer cannot claim the credit for taxes paid on excluded income O Yes, but the taxpayer cannot claim the credit and exclusion on income from the same country O Yes, but the taxpayer cannot claim the credit and exclusion on income in the same category...
Which taxpayer is most likely to benefit by itemizing deductions on their 2019 return? None of...
Which taxpayer is most likely to benefit by itemizing deductions on their 2019 return? None of these individuals are blind. Alan (68), a single taxpayer with no dependents. His allowable itemized deductions are $13,620. o Cooper (31), a single taxpayer with no dependents. His allowable itemized deductions are $13,695. Gwen (65), who is unmarried are filing head of household. She has one dependent. Her allowable itemized deductions are $19,100. Zach (28), who is married and filing a joint return with...
Which of the following statements is false? Taxes paid by a husband on a home owned...
Which of the following statements is false? Taxes paid by a husband on a home owned by his wife are not deductible by the husband on the husband's separate tax return. Special assessments paid to improve streets, sidewalks, and other like improvements are not deductible as real estate taxes even though they are assessed by a county or municipality for the public welfare. If a taxpayer's mortgage requires his real estate taxes to be "escrowed," or included in the taxpayer's...
Taxation
Kyle, a single U.S. citizen taxpayer, paid foreign tax on investment income. Which of the following conditions would make him ineligible to claim the Foreign Tax Credit without filing Form 1116?The amount of foreign tax Kyle paid is $405.Kyle has signature authority over a foreign account that had an aggregate balance of more than $10,000 during the year.Kyle received information about the amount of foreign income and foreign taxes paid on Form 1099-DIV.The tax was paid on income generated from...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a....
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal...
6. Which one of the following is considered being married for tax purposes? A. Persons living...
6. Which one of the following is considered being married for tax purposes? A. Persons living apart and legally separated or divorced. B. Persons whose marriage is annulled. C. A person whose spouse died during the year. 7. Which one of the following statements describes the consequences of using the filing status ‘married filing jointly’? A. A spouse may not be held responsible for tax if that spouse had no income. B. The tax rates are generally more favorable than...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a....
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,00 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal...
paid as an itemized deduction rather than as a foreign tax credit? A) The foreign tax...
paid as an itemized deduction rather than as a foreign tax credit? A) The foreign tax paid was less than 10% of AGL B) The foreign tax paid was to a South American country. C) The foreign tax paid was a property tax. D) The foreign tax paid was an income tax. 23) Waseem has $103,000 total taxable income, which includes $11,000 of taxable income from India. He paid $4,000 in foreign income taxes and his U.S. tax liability is...
Question 57 of 75 Can a taxpayer claim both the foreign earned income exclusion and the foreign tax credit? O No, the taxpayer must choose one tax benefit or the other. O Yes, but the taxpayer cannot claim the credit for taxes paid on excluded income O Yes, but the taxpayer cannot claim the credit and exclusion on income from the same country O Yes, but the taxpayer cannot claim the credit and exclusion on income in the same category...
Which taxpayer is most likely to benefit by itemizing deductions on their 2019 return? None of these individuals are blind. Alan (68), a single taxpayer with no dependents. His allowable itemized deductions are $13,620. o Cooper (31), a single taxpayer with no dependents. His allowable itemized deductions are $13,695. Gwen (65), who is unmarried are filing head of household. She has one dependent. Her allowable itemized deductions are $19,100. Zach (28), who is married and filing a joint return with...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2018, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,00 to Sammy. The cost of the furniture was $600. In 2019, Orange took a bad debt deduction for the $1,000. In 2020, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2018, the 12% marginal...
paid as an itemized deduction rather than as a foreign tax credit? A) The foreign tax paid was less than 10% of AGL B) The foreign tax paid was to a South American country. C) The foreign tax paid was a property tax. D) The foreign tax paid was an income tax. 23) Waseem has $103,000 total taxable income, which includes $11,000 of taxable income from India. He paid $4,000 in foreign income taxes and his U.S. tax liability is...
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