1. Foreign Tax Credit
For that reason, taxpayers are permitted to claim a credit for foreign taxes paid on foreign income. ... Investment income, real estate gains and capital gains are also subject to taxation in various foreign countries. ... Sometimes, a U.S. mutual fund with foreign investments will pay taxes to foreign countries and those taxes are passed through to the shareholder so that you can claim a foreign tax credit. ... The 1997 tax law allows individual taxpayers to avoid the limitation formula if their foreign tax credit is not more than $300 or $600 on a joint return and if the income is wholly fr...
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- Approx Pages: 3
- Grade Level: High School