investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to...
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investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to a withholding tax of $6,400. Euro reported U.S. taxable income from its manufacturing operations of $2,336,000. Total taxable income was $4,800,000. Pre-credit U.S. taxes on the taxable income were $1,008,000. Included in the computation of Euro's taxable income were "definitely allocable" expenses of $1,200,000, 50 percent of which were related to the German branch taxable income. Complete pages 1 and 2 of Form 1118 for just the foreign branch income reported by Euro. Note: Use 2023 tax rules regardless of year on tax form. Prepare Form 1118. 1118 PG1 1118 PG2 Page 1 of Form 1118. Form 1118 (Rev. December 2022) Department of the Treasury Internal Revenue Service For calendar year 20 Name of corporation Foreign Tax Credit-Corporations Attach to the corporation's tax return. Go to www.irs.gov/Form1118 for instructions and the latest information. or other tax year beginning 20 and ending OMB No. 1545- 0123 Attachment Sequence No. 118 Employer identification number Euro Corporation Use a separate Form 1118 for each applicable category of income (see instructions). Separate Category (Enter code-see instructions.) a b If code 901j is entered on line a, enter the country code for the sanctioned country (see instructions) C If one of the RBT codes is entered on line a, enter the country code for the treaty country (see instructions) Schedule A Income or (Loss) Before Adjustments (Report all amounts in U.S. dollars. See Specific Instructions.) 1. EIN or Reference ID Number (see instructions)* 2. Foreign Country or U.S. Possession (enter two-letter code-use a separate line for each) (see instructions) Gross Income or (Loss) From Sources Outside the United States 3. Inclusions Under Sections 951(a)(1) and 951A (see instructions) 4. Dividends (see instructions) (a) Exclude Gross-Up (b) Gross-Up (section 78) 5. Interest A B C Totals (add lines A through C) 6. Gross Rents, Royalties, and License Fees A B C Totals ABC C Totals A B C Totals gm 7. Sales 8. Gross Income From Performance of Services 9. Currency Gain 10. Currency Gain Code (see instructions 11. Other (attach schedule) (a) Dividends Received Deduction (see instructions) (b) Deduction Allowed Under Section 250(a) (1XA)-Foreign Derived Intangible Income (c) Deduction Allowed Under Section 250(a) (1)(B)-Global Intangible Low- Taxed Income 13. Allocable Deductions Rental, Royalty, and Licensing Expenses (d) Depreciation, Depletion, and Amortization (e) Other Allocable Expenses (f) Expenses Allocable to Sales Income (h) Currency Loss 13. Allocable Deductions (continued) (i) Currency Loss Code (see instructions) (j) Other Allocable Deductions (attach schedule) (see instructions) (k) Total Allocable Deductions (add columns 13(a) through 13(h) and 13(j)) 14. Apportioned Share of Deductions (enter amount from applicable line of Schedule H. Part I. column (b); Part II. column (f); and Part III, column (g)) 15. Net Operating Loss Deduction 0 12. Total (add columns 3(a) through 9 and 11) (g) Expenses Allocable to Gross Income From Performance of Service 16. Total Deductions (add columns 13(k) through 15) 17. Total Income or (Loss) Before Adjustments (subtract column 16 from column 12) 0 0 *For section 863(b) income, NOLs, income from RICS, high-taxed income, section 951A, and reattribution of income by reason of disregarded payments, use a single line (see instructions). Also, for reporting branches that are QBUS, use a separate line for each such branch. Cat. No. 10900F Form 1118 (Rev. 12-2022) investment in the stock of Maple Leaf Company, a Canadian corporation. The dividend was subject to a withholding tax of $6,400. Euro reported U.S. taxable income from its manufacturing operations of $2,336,000. Total taxable income was $4,800,000. Pre-credit U.S. taxes on the taxable income were $1,008,000. Included in the computation of Euro's taxable income were "definitely allocable" expenses of $1,200,000, 50 percent of which were related to the German branch taxable income. Complete pages 1 and 2 of Form 1118 for just the foreign branch income reported by Euro. Note: Use 2023 tax rules regardless of year on tax form. Prepare Form 1118. 1118 PG1 1118 PG2 Page 1 of Form 1118. Form 1118 (Rev. December 2022) Department of the Treasury Internal Revenue Service For calendar year 20 Name of corporation Foreign Tax Credit-Corporations Attach to the corporation's tax return. Go to www.irs.gov/Form1118 for instructions and the latest information. or other tax year beginning 20 and ending OMB No. 1545- 0123 Attachment Sequence No. 118 Employer identification number Euro Corporation Use a separate Form 1118 for each applicable category of income (see instructions). Separate Category (Enter code-see instructions.) a b If code 901j is entered on line a, enter the country code for the sanctioned country (see instructions) C If one of the RBT codes is entered on line a, enter the country code for the treaty country (see instructions) Schedule A Income or (Loss) Before Adjustments (Report all amounts in U.S. dollars. See Specific Instructions.) 1. EIN or Reference ID Number (see instructions)* 2. Foreign Country or U.S. Possession (enter two-letter code-use a separate line for each) (see instructions) Gross Income or (Loss) From Sources Outside the United States 3. Inclusions Under Sections 951(a)(1) and 951A (see instructions) 4. Dividends (see instructions) (a) Exclude Gross-Up (b) Gross-Up (section 78) 5. Interest A B C Totals (add lines A through C) 6. Gross Rents, Royalties, and License Fees A B C Totals ABC C Totals A B C Totals gm 7. Sales 8. Gross Income From Performance of Services 9. Currency Gain 10. Currency Gain Code (see instructions 11. Other (attach schedule) (a) Dividends Received Deduction (see instructions) (b) Deduction Allowed Under Section 250(a) (1XA)-Foreign Derived Intangible Income (c) Deduction Allowed Under Section 250(a) (1)(B)-Global Intangible Low- Taxed Income 13. Allocable Deductions Rental, Royalty, and Licensing Expenses (d) Depreciation, Depletion, and Amortization (e) Other Allocable Expenses (f) Expenses Allocable to Sales Income (h) Currency Loss 13. Allocable Deductions (continued) (i) Currency Loss Code (see instructions) (j) Other Allocable Deductions (attach schedule) (see instructions) (k) Total Allocable Deductions (add columns 13(a) through 13(h) and 13(j)) 14. Apportioned Share of Deductions (enter amount from applicable line of Schedule H. Part I. column (b); Part II. column (f); and Part III, column (g)) 15. Net Operating Loss Deduction 0 12. Total (add columns 3(a) through 9 and 11) (g) Expenses Allocable to Gross Income From Performance of Service 16. Total Deductions (add columns 13(k) through 15) 17. Total Income or (Loss) Before Adjustments (subtract column 16 from column 12) 0 0 *For section 863(b) income, NOLs, income from RICS, high-taxed income, section 951A, and reattribution of income by reason of disregarded payments, use a single line (see instructions). Also, for reporting branches that are QBUS, use a separate line for each such branch. Cat. No. 10900F Form 1118 (Rev. 12-2022)
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Taxation Of Individuals And Business Entities 2016
ISBN: 9781259334870
7th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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