Question
Foreign tax credit forms 1041, K-1, and 1116 Schedule B
Hi,
I have entered foreign tax paid by trust (f 1041) on passive income in screen 36 (K-1) so that it would appear on K-1 and it does. It appears on K-1 box 14, code E with statement on p.2. However, on schedule B of form 1116 (f1041) it does not show any amount being used for current year, and the foreign tax is being carried forward.
I tried entering data also in screen 16 (foreign tax) by selecting the country, which results in doubling the foreign tax amount on 1116 and still carries everything forward.
So how do I reduce the amount of foreign tax paid on the 1116 schedule B that is being pass thru as a foreign tax credit on the K-1?
Thank you!
Diane
