Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.
Roughly:
Foreign Tax Credit Limit = Tottal Tax Liability * (Foreign Income / Total Income)
to me, Tf is (capital gain tax for selling house in China) about 6%, while T1 > 20% (including Medicare surcharge) and T2 > 30% (effective tax rate, not marginal tax rate, not sure how large is T2 but definitely above 30%)
When you sell house in Shanghai and you've hold the house for more than 5 year, you have the choice to pay tax 5% on total price, or 20% on the gain. It is benificial to take 5% on total price. My recollection could be off but that is the ballpark number. I just take tax rate 6% on the gain as a ballpark number
Foreign Tax Credit ~= F * 6% 远小于 F * 20% < Foreign Tax Credit Limit
If you are doing business or receive salary in China then that would be a different story, the Tf could be very high. If Tf > max(T1, T2) you will definitely be hit by the limit.
If your foregin income is only from selling a house in China, it is unlikely you would be hit by this limit, if you have just a little bit of positive US source of income.
上次记得是股市小书生还常来的时候，有个什么华尔街做过后台的，说股票红利已经从股价里去掉了，所以计算回报时就没必要把红利再放回来。
这次是：
【你去年卖了房子交了中国税，当然当年在美国税表可以claim foreign tax credit。你claim这个credit的目的是为了以后报税年里可以拿回来这个credit的。否则你claim干什么？】
我也糊涂了，难道在中国卖了一次房，这个 foreign tax credit 可以反复用？难道英文 "cliam" 与中文“拿回来”不是同一个意思？
投坦现在要变成老年坦了哈。
https://bbs.wenxuecity.com/bbs/tzlc/1653701.html
打我左边脸，我把右边申过去
刚把饭端到桌上，过来个小要饭的，一口唾沫吐在我碗里，那就是被CLAIM了。
经常见到溜小狗的，小狗到电线杆下就滋一点，那个地方也就被GLAIM。
这个估计与拿回来意思不一样，那是CLAIM了还没有拿回来
给不给还要等IRS approve. Approved了还要等钱到账，才算拿到。
https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit-choosing-to-take-credit-or-deduction
Basically you can choose to deduct or credit. If you choose credit and it is over the credit limit of the tax year, you can carry over to next year.
It's very complicated, l would hire a tax expert on this one.
这丫头就这脾性，很久很久不来，每次一来就跟麻雀似的叽叽喳喳，说话一套一套的看得人眼花缭乱，人倒是机灵懂得多，也看不出有啥坏心眼。
估计五讲四美那会儿她还没出生呢，跟小孩儿你就别见气了。
我的股票也遇到过。
基本上是确保你只交一次税。
别两国都同时征收税。
全部都给你的。为什么 或你可以拿多少比例回来，这个你得问IRS或你的CPA。当然如果你当年claim这个credit很少 少的可怜，可能你可以都拿回来。这个我只是猜想但不肯定我们自己没有这么少的可怜过。哈哈。
那么留下了的那部分当然就要carry over到以后你有中国收入的时候可以去拿回来这个credit了咯。这个很难理解吗？
你要是对我不是体现出那么没有礼貌没有教养，我根本就懒得怼你。讨论问题别老把你的口头禅坏习惯跟带着。否则谁都会以牙还牙的。
烧死太多脑细胞不好。
https://bbs.wenxuecity.com/tzlc/1636398.html
you can carry back for one year and then carry forward for 10 years the unused foreign tax.
几万块的 foreign tax credit 比起几十万的 US tax liability
几万刀 foreign tax credit，根本到不了那个 limit
Limit on the CreditYour foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.
Roughly:
Foreign Tax Credit Limit = Tottal Tax Liability * (Foreign Income / Total Income)
Let F = Foreign Income
Let T1 = US tax rate on F
Let D = Domestic Income
Let T2 = US tax rate on D
Foreign Tax Credit Limit = (F * T1 + D * T2) * F / (F + D) >= (F + D) * min(T1, T2) * F / (F + D)
So, Foreign Tax Credit Limit >= F * min(T1, T2)
Let Tf be the foreign tax on F then
Foreign Tax Credit = F * Tf
to me, Tf is (capital gain tax for selling house in China) about 6%, while T1 > 20% (including Medicare surcharge) and T2 > 30% (effective tax rate, not marginal tax rate, not sure how large is T2 but definitely above 30%)
When you sell house in Shanghai and you've hold the house for more than 5 year, you have the choice to pay tax 5% on total price, or 20% on the gain. It is benificial to take 5% on total price. My recollection could be off but that is the ballpark number. I just take tax rate 6% on the gain as a ballpark number
Foreign Tax Credit ~= F * 6% 远小于 F * 20% < Foreign Tax Credit Limit
If you are doing business or receive salary in China then that would be a different story, the Tf could be very high. If Tf > max(T1, T2) you will definitely be hit by the limit.
If your foregin income is only from selling a house in China, it is unlikely you would be hit by this limit, if you have just a little bit of positive US source of income.
credit不是都可以用 有limit，得算当年税才知道，多了可以carryover，但是如果以后你没国外收入这credit是不能用的， 几年以后会作废