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Pass a foreign tax credit from simple trust to beneficiary

Level 3

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.

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3 Comments 3
Level 13

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.

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Level 5

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

Level 3

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.