Estate/Trust Tax Flashcards
1
Q
What calendar year may estates and trusts adopt?
A
Estates may adopt a calendar or any fiscal taxable year. Trusts must use a calendar year.
2
Q
How is foreign tax credit calculated?
A
The credit is limited to the lower of the foreign tax paid or the proportion of US tax allocable to foreign source income:
US Tax X (Foreign taxable income/Worldwide taxable income)
3
Q
What is the general business credit?
A
The general business credit is limited to the taxpayers net income tax reduced by 25% of net regular tax liability that exceeds $25,000
4
Q
What are the carryback/forward rules for NOL?
A
They cannot be carried back but can be carried forward infidelity.
