Distribution was made to a trust's sole beneficiary. The trust's expenses far exceeds its investment income -- no DNI and no taxable income on K-1.
The investment income includes some dividends from ADRs and taxes were withheld at source on those dividends. Does those w/o taxes get passed onto the beneficiary?
TIA
See the K-1 instructions for Line 14b, Foreign taxes
beneficiary. The trust's
Sorry, I wan't clear. I meant should the Foreign taxes be put on line
14b at all -- since there is no taxable income from the distribution?TIA
beneficiary. The trust's
If you are going to pass dividend income to the beneficiary, you should pass the foreign taxes paid on those dividends to the beneficiary. So the answer is Yes.
beneficiary. The trust's
There were dividend income; and the expenses exceeds the income. So , on the K-1, income is $0. In 2010, the distribution to the beneficiary is more than the gross income of the trust. Under this scenario, is the dividend income considered to be passed on to the beneficiary?
Some of the dividends were from ADRs; and foreign taxes were withheld. Should the foreign taxes be put on K-1, line 14 ??
sole beneficiary. The trust's
I assumed there was an entry on the 1041 Line 2a and 2b allocable to the beneficiaries and an entry on Line 9 of Schedule B. If not true, then there is no foreign taxes paid to pass through.
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