Trust distributes all of it's income to beneficiaries. Trust has Foreign tax Credit which then passes out to beneficiaries. Is the foreign tax credit allocated to beneficiaries based on income received by them or is it divided equally between them.

[BBmack]

The Lacerte program allocates the FTC equally between the trust beneficiaries even though the income is distributed unequally based on distributions received by each. Is this correct or should the FTC be allocated based on income received by each beneficiary.

[sjrcpa]

It should be allocated based on the income.

[BBmack]

That was what I thought but Lacerte allocates it equally to each beneficiary who received a distribution and says there is no other way to do it in the program. How do you handle this? Do you tell the beneficiary the the K-1 is not correct and give them the correct figures. That would seem like the only way to do it.

Thanks for your help.