Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: $$\begin{array} { r r }
2013 & \$ 2,500 \
2014 & 7,500 \
2015 & 5,000 \
2016 & 4,000
\end{array}$$ ? In the current year, 2017, her business generates an additional $15,000 general business credit.In 2017, based on her tax liability before credits, she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits, how much of the general business credit generated in 2017 is available for future years?

Question

Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: $$\begin{array} { r r } 
2013 & \$ 2,500 \
2014 & 7,500 \
2015 & 5,000 \
2016 & 4,000
\end{array}$$ ? In the current year, 2017, her business generates an additional $15,000 general business credit.In 2017, based on her tax liability before credits, she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits, how much of the general business credit generated in 2017 is available for future years?

Quizplus · Accepted Answer

Molly has a total of $19,000 in carryforward credits from 2013 to 2016 ($2,500 + $7,500 + $5,000 + $4,000) and generates an additional $15,000 in 2017, making the total available credits $34,000. She can utilize up to $20,000 in 2017. After utilizing $20,000, she has $14,000 of the 2017 credit remaining for future years, as the carryforward credits are used first.

Molly Has Generated General Business Credits Over the Years That 2013$2,50020147,50020155,00020164,000\begin{array} { r r } 2013 & \$ 2,500 \\2014 & 7,500 \\2015 & 5,000 \\2016 & 4,000\end{array}2013201420152016​$2,5007,5005,0004,000​

Molly Has Generated General Business Credits Over the Years That $\begin{array} { r r } 2013 & \$ 2,500 \\2014 & 7,500 \\2015 & 5,000 \\2016 & 4,000\end{array}$