1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why?
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1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why?
2. What are some of the considerations that Congress takes into account in determining whether to give taxpayers a credit or a deduction to motivate taxpayers to make certain expenditures?
3. If a taxpayer has both refundable credits and non-refundable credits, what order would the taxpayer want to use them? Give an example to show why your answer is correct.
4. B a US citizen sells products in France. B’s income in France is $500,000 and B pays $200,000 in French income taxes. B’s US tax liability with respect to that income is $150,000. How much of a credit will B be able to take for the French income tax paid in the current year? Will there be any carryover?
5. Before credits a company has a regular tax liability of $300,000, an alternative minimum tax of $220,000. What is the maximum amount of general business credits that the company will be able to take in the current year?
6. A company buys a building that it uses solely to provide childcare services to its employees for $300,000. It will
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