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During the current year, Becky has personal credits (P) as well as business credits (B) related to her sole proprietorship.

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During the current year, Becky has personal credits (P) as well as business credits (B) related to her sole proprietorship. Her tentative tax credits for the current year include the following:
Child tax credit …………………………………$ 2,000 P
Disabled access credit………………………….. $ 900 B
Child and dependent care credit ……………….. 1,200 P
Business energy credit …………………………. 600 B
Becky’s regular tax liability before credits is $4,000. Assume that she has no alternative minimum tax liability.
a. What is the amount of allowable personal tax credits?
b. What is the amount of allowable business tax credits?
c. What treatment is accorded to the unused tax credits for the current year?

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a Allowable personal tax credits total 3 200 2 000 1 200 b T…View the full answer


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Federal Taxation 2016 Comprehensive

Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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Question Posted: December 11, 2015 02:45:44
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