Foreign Tax Credit- was Simplied Limitation Election made previously?

[VandB]

How can I tell if CPA has made the Simplified Foreign Tax limitation Election in previous years? (CPA prepared taxes before and I'm doing it now). I have foreign tax credit carryovers in Regular tax and AMT (Part3 of FTC Credit Computation Worsheet from last yr). Thx!

[DaveF1006]

It depends. You can check whether your CPA made the Simplified Foreign Tax Limitation Election in previous years by reviewing your Form 1116 from prior tax returns. Here are some suggestions on what to look for:

1. Single vs. Multiple Forms 1116: If the election was made, you should see only one Form 1116 for each type of income (e.g., general limitation income, passive income etc.). 
2. If the election was not made, you would have two Forms 1116—one for regular tax and another for AMT.Line 17 on Form 1116:
3. If the election was made, the net foreign source income for AMT (Line 17 of AMT Form 1116) should match the amount on Line 17 of the regular tax Form 1116. If the numbers differ, the election was likely not made.

Foreign Tax Credit Carryover Worksheet:

1. Since you have foreign tax credit carryovers, check the FTC Credit Computation Worksheet from last year. 
2. If the election was made, the carryover amounts should be the same for both regular tax and AMT.