Pass a foreign tax credit from simple trust to beneficiary

bjscheel · ‎04-12-2024

Simple trust has foreign tax paid. I have filled out information and an 1116 prints. The trust doesn't have a tax liability so line 24 is $0. I have also filled in boxes in the K-1 overrides screen so the K-1 shows the amount as Total Foreign Taxes, but the General Info document still shows it carrying over to 2024 so I don't know if I've done everything I should.

Accountant-Man

1) Why doesn't the trust have any tax liability?

2) Are you passing income out to the beneficiary? You have to in order to get the FTC out.

** I'm still a champion... of the world! Even without The Lounge.

TaxGirl3

If everything is being passed out to the beneficiary, would screen 9 help instead of K-1 overrides?

Screen 9:

Credits: 1=in Fiduciary, 2=prorate to beneficiary

bjscheel

Screen 9 looks helpful, what I ended up using was Screen 43 in the Foreign Taxes section which seemed to work to keep it from being carried over. Possibly both places would work.