Form 1118 Deemed FTC paid

[SEtaxpros]

Hi I'm trying to prepare a Form 1118 and I can't get a credit to flow through to the 1120. 

Situation: I'm making a section 962 election for a taxpayer and attaching the 1120 and forms as a statement for the 50% GILTI deduction and 80% deemed paid FTC. 

I have input my GILTI inclusion amount into the Schedule D section and the amount of foreign tax accrued but it's not pulling through to reduce the C-tax. 

Do I need to put it in multiple places on the 1118 or just screen 30?

TIA

Sarah. 

[itonewbie · Accepted solution]

If you take a look at Sch D, it computes only the 80% limit.  Although some of the numbers are relevant, your input for Sch D doesn't give Lacerte all the info it needs to prepare Sch A and B, which means you will need to populate Sch A and B manually before F.1118 will compute and flow the numbers to F.1120.

You'd think the numbers should flow between F.1118, F.8992, and F.8993 but Lacerte has not been programmed to do that.  That makes it necessary for you to compute some of the numbers offline and plug them in on multiple input screens.

International returns are not exactly Lacerte's forte.  It does a decent job but requires quite a bit manual computation and input.  If you need something more automated, you should look at GoSystem Rs or ProSystem FX.

[SEtaxpros]

Perfect. That worked great.

Thanks for your suggestions. If I find that my international client base increases i will look into the software you mentioned to get a bit more automation on my side.