Dwayne has general business credits totaling $30,000 before limitation.His regular tax liability is $83,000 and his tentative minimum tax is $79,000.What amount of general business credit can Dwayne take this year?
A)$4,000
B)$14,500
C)$25,000
D)$30,000

Question

Quizplus · Accepted Answer

The general business credit is limited to the excess of the taxpayer's net income tax over the greater of the tentative minimum tax or 25% of the net regular tax liability above $25,000. Here, the excess is $4,000 ($83,000 - $79,000).

Dwayne Has General Business Credits Totaling $30,000 Before Limitation