S-Corporation buys foreign ordinary shares which pay a dividend, and foreign taxes are withheld. Should the S-Corporation pass the foreign taxes paid to the shareholder as a discrete line item on section 16 of the K-1?
When considering that an S Corporation is by definition a PASS-THROUGH entity required to not only pass through items of income and credit, but to do so in such a way that they can be included on the recipient's personal return WHILE MAINTAINING their original character, my question to you becomes "what information do you have that makes you think you should NOT do it?"
Gene E. Utterback, Ea, RFC, ABA
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