2007-05-18 07:21:58 · 3 answers · asked by Kyle Y 1 in Business & Finance ➔ Taxes ➔ United States
The American Jobs Creation Act of 2004 repealed the Extraterritorial Income (ETI) exclusion provisions generally for transactions after 2004, subject to transition rules. Incidentally, it is neither a credit nor a deduction, but because it allows you to exclude income, it functions as a deduction.
The transition allowed an exclusion of 80% of ETI for 2005, 60% for 2006, and 0% for transactions in 2007 and forward. As the previous answer stated, the ETI exclusion has effectively been replaced by the Domestic Production Activities Deduction (DPAD). The DPAD is being phased in through 2010; for 2005-2006, it was limited to 3% of qualified income; for 2007-2009, it will be limited to 6%; and from 2010 forward, it is currently slated to be capped at 9% of qualified income.
2007-05-18 08:00:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The Extraterritorial Income Exclusion (EIE) Credit has been phased out over the past few years in favor of the Domestic Production Activities Deduction (DPAD). The final year you could claim the credit is the 2006 tax year.
2007-05-18 14:53:22 · answer #2 · answered by Gooch 2 · 2⤊ 0⤋
More details, please. Never heard of that one.
2007-05-18 14:39:08 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋