The amount of foreign tax credit is equal to the amount paid to the foreign government but cannot exceed that portion of U.S.income tax attributable to the foreign income.

Question

Quizplus · Accepted Answer

This is true. The amount of foreign tax credit cannot exceed the portion of U.S. income tax that is attributable to the foreign income, but it can be equal to the amount paid to the foreign government.

The Amount of Foreign Tax Credit Is Equal to the Amount