In which of the following situations would a taxpayer be better off to take the foreign taxes paid as an itemized deduction rather than as a foreign tax credit?

Question

In which of the following situations would a taxpayer be better off to take the foreign taxes paid as an itemized deduction rather than as a foreign tax credit?

A. The foreign tax paid was less than 10% of AGI
B. The foreign tax paid was to a South American country
C. The foreign tax paid was a property tax

is it C

Answer 1

Yes, the correct answer is C. The taxpayer would be better off taking the foreign taxes paid as an itemized deduction rather than as a foreign tax credit if the foreign tax paid was a property tax.