test50
New Member

For a simple Trust (form 1041), schedule G, line 2a can the trust take the foreign tax credit or does it go to the beneficiary on Schedule K-1box 14b or neither?

Foreign tax paid from 1099-DIV.  Simple trust has 100% income paid to beneficiary.  Long term capital gains retained by trust.

Business & farm

" Foreign tax paid from 1099-DIV.  Simple trust has 100% income paid to beneficiary."

 

In that particular scenario, the foreign taxes paid should be passed through to the beneficiary. 

 

The beneficiary's K-1 will show the gross amount of dividends received and the foreign taxes paid will have already been actually paid (essentially deducted) directly from that total by the payor of the dividends.


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LMPorter36
Returning Member

Business & farm

How and where in Lacerte is foreign tax information shown on Form 1041?

Business & farm

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