XPO Corporation has a minimum tax credit of $51,000 from 2015. If its 2016 tentative minimum tax is $211,000 and its regular tax liability is $250,000, what is its minimum tax credit carryover to 2017?
A) $51,000
B) $39,000
C) $12,000
D)$0

Question

Quizplus · Accepted Answer

The minimum tax credit carryover is calculated as the minimum tax credit from 2015 minus the difference between the regular tax liability and the tentative minimum tax for 2016. Here, $250,000 - $211,000 = $39,000 is used from the $51,000 credit, leaving a carryover of $12,000 to 2017.

XPO Corporation Has a Minimum Tax Credit of $51,000 from 2015