Are Form 3520 Credits 2023-2024

Music: most countries tax income earned in their country. This leads to the potential that a resident of one country must pay tax on the same income to two countries. To mitigate this, residents and citizens are allowed a credit against federal income tax for foreign income taxes paid or accrued. The credit means the liability to pay the tax has become fixed and the amount can be reasonably determined. A taxpayer using the cash method of accounting, like most individuals, can permanently elect to take the foreign tax credit on the accrued basis. The foreign tax credit is not refundable, that is the amount allowed as a credit cannot exceed federal income tax. The amount of foreign tax available for credit may exceed the amount allowed as a credit in any year. Any such excess is carried back or forward, that is, it's treated as if paid in another year and can be used as a credit in that year. The carryover period is currently back one year and forward ten years. A separate computation of the foreign tax credit limitation and carryovers is done for regular tax and for the alternative minimum tax. The foreign tax credit is limited to the portion of US tax on foreign source taxable income. A separate limit applies for each of two separate baskets or categories of income: general and passive. Passive income is interest, dividends, rents, royalties, and gains on property that gives rise to such income. There are some exceptions to this, Steve. Passive isn't the same here like the passive activity rules, right? We're passive is a business without material participation. This sounds more like investment, right? My passive is defined differently in the international rules. Passive income for international is interest, dividends, rents, royalties, and gains on property...