Foreign Tax Credit, part 1

Learn the basics of the credit allowed for foreign income taxes. Here's what we'll cover:
Time Topic
00:00 Introduction
02:15 Credit vs Deduction
03:52 Taxes eligible for credit
06:05 Deemed paid credit (briefly)
06:32 Quiz and closing

Quiz:
1. Which tax is eligible for FTC?
a. UK income tax withheld from gross interest
b. Nigeria assessment on wealth
c. Slobenia per share tax on shareholders
2. Slobenia imposes income tax on deemed profit of sales representatives equal to 5% of operating costs. Is this a creditable tax?
a. Yes
b. No
3. For what part of countries has IRS ruled on whether their tax is creditable?
a. 5 to 10
b. About 1/2
c. Most
Resources:
Law:
26 USC 901: http://uscode.house.gov/view.xhtml?req=(title:26%20section:901%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section901)&f=treesort&edition=prelim&num=0&jumpTo=true
26 USC 903: http://uscode.house.gov/view.xhtml?req=(title:26%20section:903%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section903)&f=treesort&edition=prelim&num=0&jumpTo=true

Forms:
Individual: Form 1116 https://www.irs.gov/pub/irs-pdf/f1116.pdf
Corporation: Form 1118 https://www.irs.gov/pub/irs-pdf/f1118.pdf

Publication 514: Foreign Tax Credit for Individuals https://www.irs.gov/pub/irs-pdf/p514.pdf

For U.S. GAAP treatment of income taxes, see ASC 740.

Answers to Quiz:
1.a.; 2.a.; 3.c.

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