Preparing Form 1116 Foreign Tax Credit Self-Study

Summary

The general purpose of the foreign tax credit (FTC) is to mitigate the effects of double taxation on foreign-source income. More specifically, the FTC reduces the taxpayer´s U.S. tax attributable to foreign-source income by all or part of the foreign taxes paid or accrued during the tax year. This course gives tax professionals the knowledge they need to complete Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), for eligible taxpayers, which helps them avoid paying double tax (once in the foreign country and again in the U.S.) on their foreign-source income.

Objectives

Upon completion of this course, you will be able to:

• Identify foreign taxes eligible for the credit
• Analyze the facts and choose to claim the credit without filing Form 1116, if eligible
• Calculate the credit, the limit on the credit and any carryovers when filing Form 1116
• Determine if income is U.S.-source or foreign-source by applying the sourcing rules
• Apply information from Schedule K-3 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc.—International, to Form 1116
• Complete Form 1116

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.