Molly has generated general business credits over the years that have not been utilized. The amounts generated and not utilized equal:
2015 $2,500
2016 7,500
2017 5,000
2018 4,000
In the current year, 2019, her business generates an additional $15,000 general business credit. In 2019, 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 2019 is available for future years?

Question

Quizplus · Accepted Answer

The total general business credit available for 2019 is $20,000. The carryforwards from previous years total $19,000 ($2,500 + $7,500 + $5,000 + $4,000). This means that only $1,000 of the $15,000 general business credit generated in 2019 can be utilized in 2019. The remaining $14,000 is available for future years.

Molly Has Generated General Business Credits Over the Years That