Preparing Form 1116 for Foreign Tax Credits Self-Study
The general purpose of the foreign tax credit is to mitigate the effects of double taxation on foreign-source income. More specifically, the foreign tax credit (FTC) reduces a U.S. taxpayer´s tax liability with respect to its foreign source income by all or part of the foreign taxes, paid or accrued during the tax year. The credit is generally limited to the lesser of the foreign tax paid or accrued, or the U.S. tax liability on the foreign source income. You need to know how to complete Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), to reduce the double taxation on their foreign-sourced income
Upon completion of this course, you will be able to:
- Differentiate between U.S. and foreign source income
- Apply the sourcing rules to maximize the foreign tax credit and minimize excess credits
- Compare the difference between the direct foreign tax credit and the indirect foreign tax credit
- Complete Form 1116
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.