Question
Trust distributes all of it's income to beneficiaries. Trust has Foreign tax Credit which then passes out to beneficiaries. Is the foreign tax credit allocated to beneficiaries based on income received by them or is it divided equally between them.
The Lacerte program allocates the FTC equally between the trust beneficiaries even though the income is distributed unequally based on distributions received by each. Is this correct or should the FTC be allocated based on income received by each beneficiary.
