In 2022, Liane Stanfield has net income of $102,000. This includes foreign non-business income of $30,000. This amount was before the withholding of taxes by the foreign government of $6,000. In calculating her 2022 taxable income, she intends to deduct a 2020 net capital loss of $10,000 and a 2019 non-capital loss of $30,000. After applying her BPA of $14,398, the tax otherwise payable for foreign tax credit purposes is $7,790. What is the amount of Liane's foreign non-business tax credit? a. $4,500 b. $3,769 c. $2,540 d. $6,000 (CANADA TAX)
In 2022, Liane Stanfield has net income of $102,000. This includes foreign non-business income of $30,000. This amount was before the withholding of taxes by the foreign government of $6,000. In calculating her 2022 taxable income, she intends to deduct a 2020 net capital loss of $10,000 and a 2019 non-capital loss of $30,000. After applying her BPA of $14,398, the tax otherwise payable for foreign tax credit purposes is $7,790. What is the amount of Liane's foreign non-business tax credit? a. $4,500 b. $3,769 c. $2,540 d. $6,000 (CANADA TAX)
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 24CE
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Question
In 2022, Liane Stanfield has net income of $102,000. This includes foreign non-business income of $30,000. This amount was before the withholding of taxes by the foreign government of $6,000. In calculating her 2022 taxable income, she intends to deduct a 2020 net capital loss of $10,000 and a 2019 non-capital loss of $30,000. After applying her BPA of $14,398, the tax otherwise payable for foreign tax credit purposes is $7,790. What is the amount of Liane's foreign non-business tax credit?
a. $4,500
b. $3,769
c. $2,540
d. $6,000
(CANADA TAX)
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