Simplified foreign tax credit limitation election for AMT
To make the simplified foreign tax credit limitation election for AMT purposes, enter
X
in the Elect Simplified Foreign Tax Credit Limitation
field in the AMT
screen. The application uses the foreign source regular taxable income to calculate the AMT foreign tax credit limitation. If foreign source regular taxable income exceeds the entire alternative minimum taxable income, each category automatically reduces by a pro rata share of the excess. Also, AMT Form 1116, Part I, will be blank.
