TAX HELP

1. What is more valuable to a taxpayer, a $100 tax credit or a $100 tax deduction? Why?

2. What are some of the considerations that Congress takes into account in determining whether to give taxpayers a credit or a deduction to motivate taxpayers to make certain expenditures?

3. If a taxpayer has both refundable credits and non-refundable credits, what order would the taxpayer want to use them? Give an example to show why your answer is correct.

4. B a US citizen sells products in France. Bs income in France is $500,000 and B pays $200,000 in French income taxes. Bs US tax liability with respect to that income is $150,000. How much of a credit will B be able to take for the French income tax paid in the current year? Will there be any carryover?

5. Before credits a company has a regular tax liability of $300,000, an alternative minimum tax of $220,000. What is the maximum amount of general business credits that the company will be able to take in the current year?

6. A company buys a building that it uses solely to provide childcare services to its employees for $300,000. It will depreciate the building over 3 years, and it will take a full years depreciation on the building. How much will its childcare credit and its depreciation deduction be?