Form 5471 Webinar Series: Foreign Tax Credit

Controlled foreign corporations frequently pay foreign income tax on their net profits. Suppose the U.S. shareholder includes the CFC's net profit in its gross income. Shouldn't the US shareholder also be entitled to use the CFC's tax payments to offset foreign tax credit against the US tax liability on the CFC's income included in the shareholder's gross income? That's the topic of this session: when is the foreign tax credit allowed, and how is it reported?