cl2019 Posted April 2, 2020 Report Posted April 2, 2020 taxpayer received 1065 k-1 distribution and paid tax to a foreign country. can he claim foreign tax credit for that payment? My first thought is that he can as although the distribution (if less than basis) is not taxable, the distribution is actually part of a pool of ordinary income plus contributions, etc. all of which have been taxed, so, he should be able to claim foreign tax credit to avoid double taxation. Can anyone comment on this? Thank you so much! Quote
Roberts Posted April 2, 2020 Report Posted April 2, 2020 I've only had K-1s from 1041 returns with foreign tax credits from dividends and I always claim them on the 1040. You effectively paid the tax, why wouldn't you get the credit? 1 Quote
Burke Posted April 13, 2020 Report Posted April 13, 2020 OP sounds as though he is reporting K-1 income information to another country? If so, use Form 1116 on US return, IMO. Quote
Abby Normal Posted April 13, 2020 Report Posted April 13, 2020 The K1 input forms have fields for entering the foreign income info, if you need to do the 1116. If not, it should flow straight to the 1040. Quote
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