Foreign Tax Credit Carryover

[WhiteOleander]

I have a client who has a foreign tax credit carryover. I have read the Pub 514. It is confusing. But, I think that unless you have some foreign income this year subject to US tax, you cannot use any of the carryover from the previous year.

Do we all agree?

[JG EA]

I have a client who has a foreign tax credit carryover. I have read the Pub 514. It is confusing. But, I think that unless you have some foreign income this year subject to US tax, you cannot use any of the carryover from the previous year.

Do we all agree?

I had this before and I think that is the way it was, but can't remember. Here are two quotes from that pub.

"1-year carryback and then a 10-year carryover"

"You cannot claim a credit for unused foreign
taxes in a year to which you carry
them unless you also claim a credit for
foreign taxes actually paid or accrued in
that year."

[WhiteOleander]

I had this before and I think that is the way it was, but can't remember. Here are two quotes from that pub.

"1-year carryback and then a 10-year carryover"

"You cannot claim a credit for unused foreign
taxes in a year to which you carry
them unless you also claim a credit for
foreign taxes actually paid or accrued in
that year."

Yes. That's what I read also. T/P is upset. Claims that since it is a carryover, he paid the tax in the prior year. I'm trying to make him understand that he received credit for all the taxes he paid to the foreign country in 2007. (I did not prepare that return). And he can't get credit for foreign taxes if he didn't pay foreign taxes. Seems fairly straightforward to me. But I may missing missing something or just flat out wrong.