c16-8 - or dividend payments are withheld in the same year...

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C:16-8 What advantages does a cash method taxpayer gain by electing to accrue foreign taxes for foreign tax credit purposes? Cash method basis taxpayers who elect to accrue their income taxes can accelerate the claiming of a tax credit for their tax payments from the year in which a payment is made to the year in which the income is subject to U.S. taxation. For most income items, this election will not change the year in which the related foreign tax credit is claimed (e.g., taxes withheld on interest
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Unformatted text preview: or dividend payments are withheld in the same year in which the income is earned and the tax is paid or accrued). For some income items, this election will necessitate the need to carryback or carryover foreign tax credits from one tax year to another. It also may prevent taxpayers from losing foreign tax credits because of timing differences between the year in which the income is reported for U.S. tax purposes and the year when the foreign taxes are paid to the foreign government....
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This note was uploaded on 01/18/2012 for the course HOMEWORK AC420 taught by Professor Atkins during the Spring '11 term at Kaplan University.

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