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.