Foreign Tax High Tax Kickout

[Juan Carlos]

If I paid foreign taxes of $150K and got a distribution over $1M and it is passive income, sale of a home that was inherited, but reclassified as General limitation because of the high income.   When I put it in the passive income section under foreign taxes but then I have to fill out the High tax kickout do I put the same amount of the tax paid which essentially doubles the foreign tax credit.  Is that correct?

 

[ILLMAS]

What tax software are you using?

[Juan Carlos]

ATX

[jklcpa]

Sorry, Juan. We may have thought you weren't a tax professional but rather an individual asking about his own personal return. That happens when we see new people come to the site and word their questions in the first person as you have done.

[Juan Carlos]

I understand Judy.  It would take to much time adding client and details when I just want confirmation or correction that needs to be made.

Thank you,

[jklcpa]

We just don't help the general public with tax questions, only other tax professionals in the business.  I was able to find your LinkedIn profile as someone who has been involved with taxes and in the State of IL.   I don't have an answer for you; maybe someone else will though.

 

[ILLMAS]

As a fellow Illinoisian, your return sounds complicated, I wish I was able to help too.

[kcjenkins]

52 minutes ago, Juan Carlos said:

I understand Judy.  It would take to much time adding client and details when I just want confirmation or correction that needs to be made.

Thank you,

Understand what you are saying, but given the complex nature of your subject, more detail is sometimes called for.  To the question, I don't think you should be doubling the credit.  Perhaps there is a box you missed checking?  Or checked and shouldn't.  With ATX, I've often found that they deal with complex issues with check boxes, and almost always, when a result does not make sense, or "feel right", I find the problem there.   Let us know, please, if you find it there.