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An issue has been identified in Reckon APS Tax 2019.2.0 whereby in some 2018 trust returns the following validation errors are occurring

VR.ATO.TRT.432311  Foreign income tax offsets - no beneficiary presently entitled

VR.AATO.TRT.432314 Foreign income tax offset - beneficiary share

CAUSE:

The foreign income tax offset should not be carried to the distribution statement where the trust income is nil (in this case the foreign capital gain has been reduced to nil, so the offset should be nil as well).

RESOLUTION:

This issue has been fixed in Reckon APS Tax 2019.4.0 which is expected to be released in mid-August.. In the interim, removing any foreign tax paid on foreign capital gains should clear the errors.