Tax credit for what was paid abroad- 20,000
Net Federal Tax= 40000-15000= 25,000. (15000 because that is what the IRS calculated as tax) IS that correct?
If based on treaties and such, $15,000 was the credit amount calculated then yes, you would pay $25,000 to the IRS for your sale of the property and your other income.
Now for NC state, if there is no long term gains and no credit for foreign tax paid, for the state the income would be 200,000 and 5.25% on it (since no tax credit or long term gains tax advantage ) would be 10,500 tax. Is that right?
Yes, that is correct.
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