XPO Corporation has a minimum tax credit of $51,000 from 2013. If its 2014 tentative minimum tax is $211,000 and its regular tax liability is $250,000, what is its minimum tax credit carryover to 2015?

Question

Quizplus · Accepted Answer

The minimum tax credit carryover is calculated as the minimum tax credit from 2013 minus the difference between the regular tax liability and the tentative minimum tax for 2014. Here, $250,000 (regular tax) - $211,000 (tentative minimum tax) = $39,000. The minimum tax credit used is $39,000, so the carryover is $51,000 - $39,000 = $12,000.

XPO Corporation Has a Minimum Tax Credit of $51,000 from 2013