Скачать или смотреть Corporate Foreign Tax Credit | Tax Course | CPA Exam

In this video, I cover corporate foreign income tax Course covered on the CPA exam.

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0:00 introduction
This video explains the corporate foreign tax credit, which helps US C-corporations avoid double taxation on income earned abroad (0:14). Without this credit, a company would pay taxes on the same income in a foreign country and then again in the US, making them less competitive (0:32).

The credit is non-refundable, meaning it can reduce your tax bill to zero but won't result in a refund if you have no tax liability (0:53). Companies can choose between taking a credit or a deduction for foreign taxes paid (2:38). A credit offers dollar-for-dollar savings, while a deduction reduces taxable income, saving a percentage based on the tax rate (3:08). Once you choose a credit, you cannot switch to a deduction (3:53).

There's a limitation on the foreign tax credit (3:42). It's calculated by taking the US tax liability on worldwide taxable income and multiplying it by the ratio of foreign income to worldwide income (4:46). The credit allowed is the lower of the actual foreign taxes paid or this calculated limitation (6:47). Any unused credit can generally be carried back one year or carried forward ten years (4:08).

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