FORM 1116

Forum|Forum|2 years ago
February 14, 2024
1 reply
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Hi, my question is if I paid my rental income tax to England on 02/28/2024 , also I have a income in the U.S. and want to file form 1116; I want to know in Part II of 1116 what box should I mark Paid or Accrued?

and what is date?

Thanks for your help!

DianeW777

It's important if you made a selection in the past. If you chose 'Accrued' in the past you must continue to use that method.

If you report on the cash basis, you can choose to take the credit for accrued taxes by checking the “Accrued” box in Part II on a timely filed original return. You can’t make this choice on an amended return. Once you choose to do this, you must credit foreign taxes in the year they accrue on all future returns.
- Form 1116 Instructions
The date is dependent on whether you are using the paid date or the accrued date. Based on your statement, the payment is 2024, however they would have been accrued possibly earlier than that, so you must decide whether you are going to use accrued or paid.

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pk12_2

Employee

@Sam Hopi generally agreeing with my colleague @DianeW777 , and being cognizant of the tax year differences between US ( calendar year ) and UK (April 1st to March 31st of following year ),

(a) you need to allocate the gross rental income and taxes paid to Calendar year

(b) generally you should use the "paid" and use the date as 12/31/XX --that is the easiest way to be compliant and homologated for the US tax year.

I am not sure if this satisfies your query -- please consider providing more details so one can provide an answer more attuned to your specific situation ( facts and circumstances ).

Will await your answer and then will circle back .