But until 2005, this foreign tax credit could offset only 90% of the alternative minimum tax they owed.
You pay the tax to Canada but can claim a foreign tax credit with the Internal Revenue Service.
First, for years prior to 2010, he may have had no U.S. tax liability against which to apply a foreign tax credit.
All passive income, which has already been taxed, is exposed to double taxation for which even the foreign tax credit is of no use.
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While the unused foreign tax credit can be applied to future years, it is unlikely that Mr. Johnson will ever see the majority of it.
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For this reason, the foreign tax credit has never been defined as a subsidy by any administration or Congress in any comprehensive study examining energy tax policy.
At least when the income is sourced to the U.K., the athlete can partially alleviate the tax hit by taking a foreign tax credit on their U.S. income tax return.
The foreign tax credit was designed to prevent American companies, like those in the oil and natural gas industry, from being double taxed on foreign income so they can compete in the global marketplace.
To claim the benefit of his cost basis in the securities sold and the foreign tax credit, he will have to prepare and file a U.S. income tax return for the year of the sale.
Raiola also factored in a partial foreign tax credit that the players can use on their U.S. returns, along with so-called "jock taxes, " in which some states require visiting athletes to pay state income tax for each game they play there.
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Dividends from publicly traded foreign companies get the 15% rate, but taxpayers are now limited to that rate in claiming the foreign tax credit: If a foreign country withholds a 30% tax, you only get a credit against your U.S. tax bill for half of it.
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Upon receiving the dividend, X Co. is permitted to utilize a foreign tax credit to reduce the U.S. tax applied to the dividend, preventing the same income from being taxed twice: once when earned by Foreign Co. and a second time when distributed to X Co.
For this reason, the U.S. tax rules governing the dollar-for-dollar foreign tax credit require a U.S. company to exhaust all effective remedies to reduce its taxes under foreign law, or else the credit will be denied in other words, U.S. law expects a U.S. company to take responsible measures to reduce its foreign tax liability, because this has long been understood to be in the national interest.
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The third provision of Mr. Van Hollen's bill seeks to change the foreign tax-credit rules but only for integrated oil and gas companies.
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The U.S. government generally gives companies operating in foreign countries a tax credit to offset the foreign taxes paid, so the companies are not taxed twice on the same foreign income.
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You will be able to deduct these from your U.S. tax bill, yet make sure the credit for foreign tax paid won't open you up to the dreaded alternative minimum tax.
U.S. law prevents double taxation by allowing a credit for foreign tax on income which is also subject to U.S. income tax.
The Japanese government launched a number of policies to expand domestic demand and open domestic markets to foreign businesses, let its currency appreciate, provided tax credit incentives for imports, and lifted financial regulations.
Expatriates can reduce or wipe out their regular U.S. income tax bills by claiming a credit for the foreign taxes they must pay.
What I think they fear is that since an oft-cited justification for the tariff on imported ethanol is that it prevents foreign ethanol producers from benefiting from domestic tax credits, if the tax credit goes away then so does that cited justification of the tariff.
It is a tax credit enjoyed by highly profitable companies like Microsoft and Apple, and even foreign companies that operate factories in our country.
Every dollar a company pays to a foreign government will ultimately cost the U.S. treasury a dollar because the U.S. must provide a dollar-for-dollar credit for foreign taxes paid on foreign income, under both the U.S. tax code and bilateral U.S. treaties with most of our major trade and investment partners.
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The U.S. attempts to tax worldwide income while giving companies a credit for taxes they pay to those countries where they earn foreign income.
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