I have an unused foreign tax credit I would like to apply. Do I simply add it in S21 'foreign tax paid' along with current year foreign tax paid, or somewhere else?

This foreign tax was paid on business income.

Answer

1 person found this helpful

Hi, thank you for using Intuit ProFile Community

The unused business foreign tax credit can be carried forward. I have attached a screenshot, (s21.PNG) show entries in column D of Part 2 as well as an entry in column L of Part 3 of schedule 21. There would need to be net foreign business income in column B and there may be current year foreign tax paid. From these entries ProFile will use the Canada Revenue Agency rules to calculate the allowed credit. So, current year foreign tax paid for column C and carry forward in column D.

As alluded to above there are different rules for business and non business foreign tax.

If you have specific questions for your scenario, you can check with CRA or check the guide I provided above.

Hope this helps

Was this answer helpful? Yes No
Default user avatars original
Moderator
1 additional answer

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: