XPO Corporation has a minimum tax credit of $51,000 from 2016.If its 2017 tentative minimum tax is $211,000 and its regular tax liability is $250,000,what is its minimum tax credit carryover to 2018?

Question

Quizplus · Accepted Answer

The minimum tax credit carryover to 2018 is calculated as the minimum tax credit from 2016 minus the amount used in 2017. Since the regular tax liability ($250,000) exceeds the tentative minimum tax ($211,000), the entire minimum tax credit of $51,000 can be used in 2017, leaving a carryover of $51,000 - ($250,000 - $211,000) = $12,000.

XPO Corporation Has a Minimum Tax Credit of $51,000 from 2016.If