1041-US: Foreign tax credit carryover is not allocated to beneficiaries (FAQ)

Alerts and notices

Question

Why is foreign tax credit carryover not allocated to beneficiaries?

Answer

In the year the foreign tax credit is generated, the credit may be allocated to beneficiaries or be used against the estate or trust tax liability. Any unused carryover may be used only against future estate or trust tax liability, but is no longer available for allocation to beneficiaries. Any unused foreign tax credit carryover expires at estate or trust termination.

Related topic: 1041-US: Form 1116 FAQs