Name and briefly explain three separate mechanisms that the U.S. uses to prevent the double taxation...

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Name and briefly explain three separate mechanisms that the U.S. uses to prevent the double taxation of the income of a U.S. person doing business outside of the United States. Briefly discuss the concept of "nexus" and how it affects 1) U.S. income tax liabilities and 2) state income tax liabilities. Name and briefly explain three separate mechanisms that the U.S. uses to prevent the double taxation of the income of a U.S. person doing business outside of the United States. Briefly discuss the concept of "nexus" and how it affects 1) U.S. income tax liabilities and 2) state income tax liabilities.

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Q1 Foreign tax credit This credit is a dollar reduction in US taxes associated with the foreign source of income It is important to note that the foreign tax credit is a federal tax concept and can on... View the full answer