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Form 1118, Foreign Tax Credit-Corporations

This is a foreign tax credit for corporations. The form provided here is simply a sample of what the actual Form 1118 looks like.

Form 1118
OMB No. 1545-0121

Department of the Treasury
Internal Revenue Service


Schedule A

Foreign Tax Credit--Corporations

For calendar year ________,

or other tax year beginning ________, ________, and ending ________,

Name of corporation _____________________

Employer identification number _____________________

Complete this form for credit for taxes paid on the categories of income listed below. See page 2 of the instructions for descriptions. Also, see Specific Instructions on page 5.

Important: Complete a SEPARATE Form 1118 for each applicable income category. Check only one box on each form.

____ Passive income
____ High withholding tax interest
____ Financial services income
____ Shipping income
____ Dividends from a DISC or former DISC
____ Taxable Income Attributable to Foreign Trade Income
____ Certain distributions from a foreign sales corporation (FSC) or former FSC
____ Dividends from each noncontrolled Section 902 Corporation:
Name of Foreign Corporation __________________________
____ General limitation income
____ Section 901(j) income:
Name of Sanctioned Country __________________________
____ Income re-sourced by treaty:
Name of Country __________________________
Country of Incorporation __________________________

Schedule A Income or (Loss) Before Adjustments
(Report all amounts in U.S. dollars. See Specific Instructions on page 5. )

A

1. Foreign Country or U.S. Possession (Enter two-letter code from page 11 of instructions. Use a separate line for each.) *

Gross Income or (Loss) From Sources Outside the United States (INCLUDE Foreign Branch Gross Income here and on Schedule F)

2. Deemed Dividends (see instructions)

(a) Exclude gross-up __________________________

(b) Gross-up (sec. 78) __________________________

3. Other Dividends

(a) Exclude gross-up __________________________

(b) Gross-up (sec. 78) __________________________

4. Interest __________________________

5. Gross Rents, Royalties, and License Fees __________________________

6. Gross Income From Performance of Services ______________________

7. Other (attach schedule) __________________________

8. Total (add columns 2(a) through 7) __________________________

...

G

1. Foreign Country or U.S. Possession (Enter two-letter code from page 11 of instructions. Use a separate line for each.) *

Gross Income or (Loss) From Sources Outside the United States (INCLUDE Foreign Branch Gross Income here and on Schedule F)

2. Deemed Dividends (see instructions)

(a) Exclude gross-up __________________________

(b) Gross-up (sec. 78) __________________________

3. Other Dividends

(a) Exclude gross-up __________________________

(b) Gross-up (sec. 78) __________________________

4. Interest __________________________

5. Gross Rents, Royalties, and License Fees __________________________

6. Gross Income From Performance of Services ______________________

7. Other (attach schedule) __________________________

8. Total (add columns 2(a) through 7) __________________________

Totals (add lines A through G) __________________________

Deductions (INCLUDE Foreign Branch Deductions here and on Schedule F)

* For section 863(b) income, use a single line and enter "863(b)."

A

9. Definitely Allocatable Deductions

Rental, Royalty, and Licensing Expenses

(a) Depreciation, Depletion, and Amortization _______________________

(b) Other Expenses __________________________

(c) Expenses Related to Gross Income From Performance of Services __________________________

(d) Other Definitely Allocatable Deductions __________________________

(e) Total Definitely Allocatable Deductions (add columns 9(a) through 9(d)) ___________________

10. Apportioned Share of Deductions Not Definitely Allocatable (enter amount from applicable line of Schedule H, Part II, column (d)) __________________________

11. Total Deductions (add columns 9(e) and 10) ______________________

12. Total Income or (Loss) Before Adjustments (subtract column 11 from column 8) __________________________

...

G

9. Definitely Allocatable Deductions

Rental, Royalty, and Licensing Expenses

(a) Depreciation, Depletion, and Amortization _______________________

(b) Other Expenses __________________________

(c) Expenses Related to Gross Income From Performance of Services __________________________

(d) Other Definitely Allocatable Deductions __________________________

(e) Total Definitely Allocatable Deductions (add columns 9(a) through 9(d)) ___________________

10. Apportioned Share of Deductions Not Definitely Allocatable (enter amount from applicable line of Schedule H, Part II, column (d)) __________________________

11. Total Deductions (add columns 9(e) and 10) ______________________

12. Total Income or (Loss) Before Adjustments (subtract column 11 from column 8) __________________________

A through G Totals

9. Definitely Allocatable Deductions

Rental, Royalty, and Licensing Expenses

(a) Depreciation, Depletion, and Amortization _______________________

(b) Other Expenses __________________________

(c) Expenses Related to Gross Income From Performance of Services __________________________

(d) Other Definitely Allocatable Deductions __________________________

(e) Total Definitely Allocatable Deductions (add columns 9(a) through 9(d)) ___________________

10. Apportioned Share of Deductions Not Definitely Allocatable (enter amount from applicable line of Schedule H, Part II, column (d)) __________________________

11. Total Deductions (add columns 9(e) and 10) ______________________

12. Total Income or (Loss) Before Adjustments (subtract column 11 from column 8) __________________________


Schedule B Foreign Tax Credit (Report all foreign tax amounts in U.S. dollars. )

Part I--Foreign Taxes Paid, Accrued, and Deemed Paid (See page 5 of instructions. )

A

1. Credit is Claimed for Taxes:

____ Paid
Date Paid _____________

____ Accrued
Date Accrued _____________

2. Foreign Taxes Paid or Accrued (attach schedule showing amounts in foreign currency and conversion rate(s) used)

Tax Withheld at Source on:

(a) Dividends _____________

(b) Interest _____________

(c) Rents, Royalties, and License Fees _____________

Other Foreign Taxes Paid or Accrued on:

(d) Section 863(b) Income _____________

(e) Foreign Branch Income _____________

(f) Services Income _____________

(g) Other _____________

(h) Total Foreign Taxes Paid or Accrued (add columns 2(a) through 2(g)) _____________

3. Tax Deemed Paid (from Schedule C--Part I, column 10, Part II, column 8(b), and Part III, column 8) _____________

...

G

1. Credit is Claimed for Taxes:

____ Paid
Date Paid _____________

____ Accrued
Date Accrued _____________

2. Foreign Taxes Paid or Accrued (attach schedule showing amounts in foreign currency and conversion rate(s) used)

Tax Withheld at Source on:

(a) Dividends _____________

(b) Interest _____________

(c) Rents, Royalties, and License Fees _____________

Other Foreign Taxes Paid or Accrued on:

(d) Section 863(b) Income _____________

(e) Foreign Branch Income _____________

(f) Services Income _____________

(g) Other _____________

(h) Total Foreign Taxes Paid or Accrued (add columns 2(a) through 2(g)) _____________

3. Tax Deemed Paid (from Schedule C--Part I, column 10, Part II, column 8(b), and Part III, column 8) _____________

Totals (add lines A through G) _____________

Part II--Separate Credit Limitation ( Complete a separate Part II for each applicable category of income. )

1 Total foreign taxes paid or accrued (total from Part I, column 2(h)) _____________

2 Total taxes deemed paid (total from Part I, column 3) _____________

3 Reductions of taxes paid, accrued, or deemed paid (enter total from Schedule G) (_____________)

4 Total carryover of foreign taxes (attach schedule showing computation in detail--see page 6 of the instructions) _____________

5 Total foreign taxes (combine lines 1 through 4) _____________

6 Enter the amount from the applicable column of Schedule J, Part I, line 11. (See instructions.) If Schedule J is not required to be completed, enter the
result from the "Totals" line of column 12 of the applicable Schedule A _____________

7a Total taxable income from all sources (enter taxable income from the corporation's tax return) _____________

b Adjustments to line 7a. (See page 6 of instructions.) _____________

c Subtract line 7b from line 7a _____________

8 Divide line 6 by line 7c. Enter the resulting fraction as a decimal. (See instructions.) If line 6 is greater than line 7c, enter 1 _____________

9 Total U.S. income tax against which credit is allowed (regular tax liability (see section 26(b)) minus possessions tax credit determined under section 936 or 30A) _____________

10 Credit limitation (multiply line 8 by line 9). (See page 6 of instructions.) _____________

11 Separate foreign tax credit (enter the smaller of line 5 or line 10 here and on the appropriate line of Part III) _____________

Part III--Summary of Separate Credit Limitations
(Enter amounts from Part I, line 11 for each applicable income category. Do not complete for section 901(j) income.)

1 Credit for taxes on passive income _____________

2 Credit for taxes on high withholding tax interest _____________

3 Credit for taxes on financial services income _____________

4 Credit for taxes on shipping income _____________

5 Credit for taxes on dividends from each noncontrolled section 902 corporation (combine all such credits on this line) _____________

6 Credit for taxes on dividends from a DISC or former DISC _____________

7 Credit for taxes on taxable income attributable to foreign trade income _____________

8 Credit for taxes on certain distributions from a FSC or former FSC _____________

9 Credit for taxes on General Limitation income _____________

10 Credit for taxes on income re-sourced by treaty (combine all such credits on this line) _____________

11 Total (add lines 1 through 10) _____________

12 Reduction in credit for international boycott operations (see page 6 of instructions) _____________

13 Total foreign tax credit (subtract line 12 from line 11). Enter here and on the appropriate line of the corporation's tax return _____________

Schedule C Tax Deemed Paid by Domestic Corporation Filing Return

Use this schedule to figure the tax deemed paid by the corporation with respect to dividends from a first-tier foreign corporation under section 902(a), and deemed inclusions of earnings from a first- or lower-tier foreign corporation under section 960(a). Report all amounts in U.S. dollars unless otherwise specified.

Part I--Dividends and Inclusions From Post-1986 Undistributed Earnings

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated

(a) Taxes Paid _____________

(b) Taxes Deemed Paid (from Schedule D, Part I-- see instructions) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b)) _____________

8. Dividends and Deemed Inclusions

(a) Functional Currency _____________

(b) U.S. Dollars _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated

(a) Taxes Paid _____________

(b) Taxes Deemed Paid (from Schedule D, Part I-- see instructions) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b)) _____________

8. Dividends and Deemed Inclusions

(a) Functional Currency _____________

(b) U.S. Dollars _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Total (Add amounts in column 10. Include result here and on "Totals" line of Schedule B, Part I, column 3) _____________

Part II--Dividends Paid Out of Pre-1987 Accumulated Profits

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Accumulated Profits for Tax Year Indicated (in functional currency computed under section 902) (attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid on Earnings and Profits (E&P) for Tax Year Indicated (in functional currency) (see instructions) _____________

6. Dividends Paid

(a) Functional Currency _____________

(b) U.S. Dollars _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (see instructions)

(a) Functional Currency _____________

(b) U.S. Dollars _____________

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Accumulated Profits for Tax Year Indicated (in functional currency computed under section 902) (attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid on Earnings and Profits (E&P) for Tax Year Indicated (in functional currency) (see instructions) _____________

6. Dividends Paid

(a) Functional Currency _____________

(b) U.S. Dollars _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (see instructions)

(a) Functional Currency _____________

(b) U.S. Dollars _____________

Total (Add amounts in column 8b. Include result here and on "Totals" line of Schedule B, Part I, column 3) _____________

Part III--Deemed Inclusions From Pre-1987 Earnings and Profits

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. E&P for Tax Year Indicated (in functional currency translated from U.S. dollars, computed under section 964) (attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated (see instructions) _____________

6. Deemed Inclusions

(a) Functional Currency _____________

(b) U.S. Dollars _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (multiply column 5 by column 7) _____________

1. Name of Foreign Corporation (identify DISCs and former DISCs) _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. E&P for Tax Year Indicated (in functional currency translated from U.S. dollars, computed under section 964) (attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated (see instructions) _____________

6. Deemed Inclusions

(a) Functional Currency _____________

(b) U.S. Dollars _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (multiply column 5 by column 7) _____________

Total (Add amounts in column 8. Enter the result here and include on "Totals" line of Schedule B, Part I, column 3) _____________


Schedule D Tax Deemed Paid by First- and Second-Tier Foreign Corporations under Section 902(b)

Use Part I to compute the tax deemed paid by a first-tier foreign corporation with respect to dividends from a second-tier foreign corporation. Use Part II to compute the tax deemed paid by a second-tier foreign corporation with respect to dividends from a third-tier foreign corporation. Report all amounts in U.S. dollars unless otherwise specified.

Part I--Tax Deemed Paid by First-Tier Foreign Corporations

Section A--Dividends Paid Out of Post-1986 Undistributed Earnings (Include the column 10 results in Schedule C, Part I, column 6(b).)

1. Name of Second-Tier Foreign Corporation and Its Related First-Tier Foreign Corporation _____________

2. Tax Year End (Yr-Mo) (see instructions)

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated

(a) Taxes Paid _____________

(b) Taxes Deemed Paid (see instructions) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b)) _____________

8. Dividends Paid (in functional currency)

(a) of Second-tier Corporation _____________

(b) of First-tier Corporation _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Section B--Dividends Paid Out of Pre-1987 Accumulated Profits (Include the column 8(b) results in Schedule C, Part I, column 6(b).)

1. Name of Second-Tier Foreign Corporation and Its Related First-Tier Foreign Corporation _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Accumulated Profits for Tax Year Indicated (in functional currency-- attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated (in functional currency-- see instructions) _____________

6. Dividends Paid (in functional currency)

(a) of Second-tier Corporation _____________

(b) of First-tier Corporation _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (see instructions)

(a) Functional Currency of Second-tier Corporation _____________

(b) U.S. Dollars _____________

Part II--Tax Deemed Paid by Second-Tier Foreign Corporations

Section A--Dividends Paid Out of Post-1986 Undistributed Earnings (Include the column 10 results in Section A, column 6(b), of Part I above.)

1. Name of Third-Tier Foreign Corporation and Its Related Second-Tier Foreign Corporation _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated

(a) Taxes Paid _____________

(b) Taxes Deemed Paid (from Schedule E, Part I, column 10) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b)) _____________

8. Dividends Paid (in functional currency)

(a) of Third-tier Corporation _____________

(b) of Second-tier Corporation _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Section B--Dividends Paid Out of Pre-1987 Accumulated Profits (Include the column 8(b) results in Section A, column 6(b), of Part I above.)

1. Name of Third-Tier Foreign Corporation and Its Related Second-Tier Foreign Corporation _____________

2. Tax Year End (Yr-Mo) (see instructions) _____________

3. Country of Incorporation (enter country code from page 11 of instructions) _____________

4. Accumulated Profits for Tax Year Indicated (in functional currency-- attach schedule) _____________

5. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated (in functional currency--see instructions) _____________

6. Dividends Paid (in functional currency)

(b) of Second-tier Corporation _____________

(a) of Third-tier Corporation _____________

7. Divide Column 6(a) by Column 4 _____________

8. Tax Deemed Paid (see instructions)

(a) In Functional Currency of Third-tier Corporation _____________

(b) U.S. Dollars _____________

Schedule E Tax Deemed Paid by Certain Third-, Fourth-, and Fifth-Tier Foreign Corporations Under Section 902(b)
. Use this schedule to report taxes deemed paid with respect to dividends from eligible post-1986 undistributed earnings of fourth-, fifth- and sixth-tier controlled foreign corporations. Report all amounts in U.S. dollars unless otherwise specified.

Part I--Tax Deemed Paid by Third-Tier Foreign Corporations (Include the column 10 results in Schedule D, Part II, Section A, column 6(b).)

1. Name of Fourth-Tier Foreign Corporation and Its Related Third-Tier Foreign Corporation _____________

2. Country of Incorporation (enter country code from page 11 of instructions) _____________

3. Tax Year End (Yr-Mo) (see instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated

(a) Taxes Paid _____________

(b) Taxes Deemed Paid (from Part II, column 10) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b))

8. Dividends Paid (in functional currency)

(a) Of Fourth-tier CFC _____________

(b) Of Third-tier CFC _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Part II--Tax Deemed Paid by Fourth-Tier Foreign Corporations (Include the column 10 results in column 6(b) of Part I above.)

1. Name of Fifth-Tier Foreign Corporation and Its Related Fourth-Tier Foreign Corporation _____________

2. Country of Incorporation (enter country code from page 11 of instructions) _____________

3. Tax Year End (Yr-Mo) (see instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated (a) Taxes Paid (b) Taxes Deemed Paid (from Part III, column 10) _____________

7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and 6(b)) _____________

8. Dividends Paid (in functional currency)

(a) Of Fifth-tier CFC _____________

(b) Of Fourth-tier CFC _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Part III--Tax Deemed Paid by Fifth-Tier Foreign Corporations (Include the column 10 results in column 6(b) of Part II above.)

1. Name of Sixth-Tier Foreign Corporation and Its Related Fifth-Tier Foreign Corporation _____________

2. Country of Incorporation (enter country code from page 11 of instructions)
_____________

3. Tax Year End (Yr-Mo) (see instructions) _____________

4. Post-1986 Undistributed Earnings (in functional currency--attach schedule) _____________

5. Opening Balance in Post-1986 Foreign Income Taxes _____________

6. Foreign Taxes Paid For Tax Year Indicated _____________

7. Post-1986 Foreign Income Taxes (add columns 5 and 6) _____________

8. Dividends Paid (in functional currency)

(a) Of Sixth-tier CFC _____________

(b) Of Fifth-tier CFC _____________

9. Divide Column 8(a) by Column 4 _____________

10. Tax Deemed Paid (multiply column 7 by column 9) _____________

Schedule F Gross Income and Definitely Allocatable Deductions for Foreign Branches

A

1. Name of Foreign Country or U.S. Possession (Use a separate line for each.) _____________

2. Gross Income _____________

3. Definitely Allocatable Deductions _____________

...

H

1. Name of Foreign Country or U.S. Possession (Use a separate line for each.) _____________

2. Gross Income _____________

3. Definitely Allocatable Deductions _____________

1. Name of Foreign Country or U.S. Possession (Use a separate line for each.) _____________

2. Gross Income _____________

3. Definitely Allocatable Deductions _____________

Totals (add lines A through H)*

Gross Income _____________

Definitely Allocatable Deductions _____________

* Note: The Schedule F totals are not carried over to any other Form 1118 Schedule. (These totals were already included in Schedule A.) However, the IRS requires the corporation to complete Schedule F under the authority of section 905(b).

Schedule G Reductions of Taxes Paid, Accrued, or Deemed Paid

A Reduction of Taxes Under Section 901(e)--Attach separate schedule _____________

B Reduction of Oil and Gas Extraction Taxes--Enter amount from Schedule I, Part II, line 6 _____________

C Reduction of Taxes Due to International Boycott Provisions--Enter appropriate portion of Schedule C (Form 5713), line 2b. Important: Enter only "specifically attributable taxes" here. _____________

D Reduction of Taxes for Section 6038(c) Penalty--Attach separate schedule _____________

E Other Reductions of Taxes--Attach schedule(s) _____________

Total (add lines A through E). Enter here and on Schedule B, Part II, line 3 _____________

Schedule H Apportionment of Deductions Not Definitely Allocatable (Complete Only Once)

Part I--Research and Development Deductions

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

1 Totals (see page 8 of instructions)

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) ____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

2 Total to be apportioned

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vii) Total R&D Deductions Under Gross Income Method _____________

3 Apportionment among statutory groupings:

a General limitation income

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

b Passive income

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________
(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

c High withholding tax interest

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

d Financial services income

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

e Shipping income

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

f Dividends from noncontrolled section 902 corp.*

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

g Taxable income attributable to foreign trade income

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

h. Section 901(j) income*

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

i. Income re-sourced by treaty*

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

4 Total foreign (add lines 3a through 3i)

(a) Sales Method

Product line #1 (SIC Code: _______________)*

(i) Gross Sales _____________

(ii) R&D Deductions _____________

Product line #2 (SIC Code: _______________)*

(iii) Gross Sales _____________

(iv) R&D Deductions _____________

(v) Total R&D Deductions Under Sales Method (add columns (ii) and (iv)) _____________

(b) Gross Income Method--Check method used:

____ Option 1 ____ Option 2

(vi) Gross Income _____________

(vii) Total R&D Deductions Under Gross Income Method _____________

(c) Total R&D Deductions Not Definitely Allocatable (enter all amounts from column (a)(v) or all amounts from 1 column (b)(vii)) _____________

Part II--Interest Deductions, All Other Deductions, and Total Deductions

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

1a Totals (see page 9 of instructions)

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

b Amounts specifically allocatable under Temp. Regs. 1.861-10T(e)

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

c Other specific allocations under Temp. Regs. 1.861-10T

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

d Assets excluded from apportionment formula

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

2 Total to be apportioned (subtract lines 1b, 1c, and 1d from line 1a)

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

3 Apportionment among statutory groupings:

a General limitation income

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

b Passive income

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

c High withholding tax interest

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

d Financial services income

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

e Shipping income

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

f Dividends from noncontrolled section 902 corporation*

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

g Taxable income attributable to foreign trade income

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

h Certain distributions from a FSC or former FSC

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

i Dividends from a DISC or former DISC

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

j. Section 901(j) income*

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

k. Income re-sourced by treaty*

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

4 Total foreign (add lines 3a through 3k)

(a) Average Value of Assets--Check method used:

____ Fair market value ____ Tax book value

(i) Nonfinancial Corporations _____________

(ii) Financial Corporations _____________

(b) Interest Deductions

(iii) Nonfinancial Corporations _____________

(iv) Financial Corporations _____________

(c) All Other Deductions Not Definitely Allocatable _____________

(d) Totals (add the corresponding amounts from column (c), Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part II). Enter each amount from lines 3a through 3k below in column 10 of the corresponding Schedule A. _____________

* Important: See Computer-Generated Schedule H in instructions.

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