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Deductions & credits
@RJG0307 , Great news .
Hope you have also been told that sometimes it is better ( in the longer term ) to recognize a smaller foreign tax to be able to use the safe harbor than recognizing the full amount and having to use the form 1116 limitations. For example ,
1. US income 120,000, Foreign dividend income 10,000
2. Filing MFJ
3. Foreign Tax on dividend 1000
This would result in foreign tax credit of US$600 using safe harbor i.e. recognizing only $600 as foreign taxes paid. However if you you recognize the whole foreign taxes paid as $1000, the allowable may be be less than 10,000 / 120,000 times the total tax on world income i.e. 7.6% of the tax on 130,000 approx. Thus while the foreign tax is recognized in full, the allowable amount for the current year will be limited and the rest of the credit may be carried forward ( as long there is foreign income in the forward years and again limited by the foreign income to world income ratio.
That is my three cents.