For dividends received prior to 2018, the deemed paid foreign tax credit was available only to U.S. corporations that own 30% or more of the voting stock of a foreign corporation that paid dividends during the taxable year.

Question

Quizplus · Accepted Answer

The deemed paid foreign tax credit was available to U.S. corporations that owned at least 10% of the voting stock of a foreign corporation, not the 30% threshold mentioned. This credit allowed U.S. corporations to claim a credit for a portion of the taxes paid by the foreign corporation on the income out of which dividends were paid.

For Dividends Received Prior to 2018, the Deemed Paid Foreign