How do I pass along, presumably on the beneficiary's K-1, foreign tax credits
from 2 previous years, for a final trust tax return where no no taxes were paid
in any of the last 3 years. This trust was held, with no payouts until
this final return for 2017. All funds were remanded to the custody of the
beneficiary in December of 2017.
Previous Trust returns included form 1116's from both 2015
and 2016; there were no foreign tax credits for 2017. The form 1116
instructions indicate that foreign tax credits can be carried forward for 7
years.
In so far as short and long term carryovers, to the beneficiary,
are accommodated by the K-1 document, it only seems logical that the foreign
tax credits can be carried forward as well.
The final tax return is being prepared using "TurboTax
Business." Please provide the specific entry instructions necessary
in "TurboTax Business" in order to pass along the foreign tax credits
to the beneficiary. If necessary, the forms 1116, from both years, can be
included as attachments to either or both the "final trust return"
and / or the "personal return" filed by the beneficiary."
If the 1116 forms need to be included, please advise as to which return(s) will
need to have them attached.
This has to be a tough question.
Your prompt reply is very much appreciated and includes a
sincere thanks as well.
