Charlie, a U.S. taxpayer, earned $70,000 in foreign income during the tax year. Of this amount, $40,000 was passive income, and the remaining $30,000 was general income. Charlie paid foreign taxes of $8,000 on the passive income and $12,000 on the general income. 

What is the maximum foreign tax credit he can claim?

Answer rating: 100% (QA)

ANSWER To calculate the maximum foreign tax credit Charlie can claim we need to determine the foreig... View the full answer