Business Paper-Tax Problems

Tax Problems

Responde the following questions:

1. Ginja, a U.S. citizen, leaves the U.S. at 5:00 PM on July 31, 2016 and arrives in Portugal at 11:00 AM the next day.  Right away, she establishes a permanent residence in Portugal and maintains that permanent residence until she leaves to return her residence to the U.S. at 8:00 PM on July 1, 2018.  During her residence in Portugal, she only left the country one time, for a vacation to other European countries from July 8, 2017 through July 29, 2017.  Does Ginja qualify for the Section 911 benefits?  If so, what is the amount of her foreign income exclusions for 2016, 2017, and 2018.
2. During the current year, Harrison Corp., a U.S. corporation and accrual method taxpayer, engages in both domestic and foreign business activities.  All of its foreign activities are conducted through a branch in Singapore.  The results of the current years’ operations are:

1. 1. 1. U.S. source taxable income                $3,500,000
      2. Foreign source taxable income           $2,000,000
      3. Accrued Singapore income taxes       $750,000

What is Harrison’s foreign tax credit for the current year (assuming the corporate tax rate is 34% and income from all foreign activities fall into a single basket)?  Are any FTC carryovers or carrybacks available?  If so, in what years could they potentially be used?