Foreign Tax Credit Form 1116
Anyone have any experience of Form 1116 claiming Foreign Tax Credit in the US? I'm seeking to plan my affairs before moving over and trying to identify the most appropriate ways of dealing with financial transactions.
Form 1116 identifies the amount of foreign tax accrued or paid in a US tax year versus total income in that year both in the US and overseas. Anyone know how this works with income generated prior to the US tax year (i.e., say in November 2006) accruing a tax obligation in the UK in April 2007 (on filing a self assessment), being payable by January 2008? The 1116 asks about foreign-sourced income in the US tax year in which the tax is paid or accrued (in this case arguably 2007 or 8) which, if nil, results in a fraction of allowable foreign tax credit percentage of 0/x - i.e. nil. Is this a scenario that simply negates the credit leaving the itemized deduction as the only option? |
Re: Foreign Tax Credit Form 1116
Originally Posted by AJP1
(Post 5031037)
Anyone have any experience of Form 1116 claiming Foreign Tax Credit in the US? I'm seeking to plan my affairs before moving over and trying to identify the most appropriate ways of dealing with financial transactions.
~ Jenney |
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