What is the purpose of Part III?

Part III is used to show the carryback and carryforward of foreign tax credits. It also allows a taxpayer to elect to apply their unused foreign tax credit against their U.S. federal income tax liability in future years.

What is Schedule J (Form 1118) used for?

Schedule J (Form 1118) is used by corporations and partnerships to compute their Subpart F income, global intangible low-taxed income (GILTI), and earnings and profits under the Internal Revenue Code.

What information is required in Part I of Schedule J (Form 1118)?

Part I of Schedule J requires corporations and partnerships to report their foreign oil and gas income, foreign base company sales income, foreign branch income, and other types of foreign sources income.

What is the purpose of Part II of Schedule J (Form 1118)?

Part II of Schedule J is used to recharacterize certain items of income or loss from one category to another. It is also used to recapture previously allocated losses.

How do you fill out Part II?

To fill out Part II, you must first determine the amount of your foreign tax credit using Part I. Then, you add up any other allowable foreign tax credits and deductions to arrive at your total foreign tax credit. This is then subtracted from your U.S. federal income tax liability to determine your refund or balance due.

What is a separate limitation loss?

A separate limitation loss is an allowable loss that can offset income in a specific category, such as passive activity or resourced treaty income. It must meet certain requirements, such as being from a trade or business and not being a general loss.

What are the categories for separate limitation losses?

The categories for separate limitation losses are: passive activity loss (PAL), general limitation of the PAL, and the overall foreign loss account. A separate limitation loss can only be applied to income in one category at a time.

What is the purpose of Part III and IV of Schedule J (Form 1118)?

Part III of Schedule J is used to report and adjust overall foreign loss accounts for each separate category. Part IV is used to report and adjust overall domestic loss accounts with respect to each separate category.

What are the three parts of Schedule J?

The three parts of Schedule J are Part I, Part II, and Part III. Part I calculates the foreign tax credit, while Part II is used to calculate other foreign tax credits and deductions. Part III shows the carryback and carryforward of foreign tax credits.

What is the purpose of Schedule J?

Schedule J, also known as the Foreign Tax Credit and Other Credits/Deductions, is used to calculate the foreign tax credit and other deductions that can reduce a taxpayer's U.S. federal income tax liability.

Form 1118, also known as the Foreign Tax Credit, is used by U.S. taxpayers to claim a credit for foreign income taxes paid on nonresident alien income. It is filed along with Form 1040.

How does a corporation determine the portion of general category income that is recharacterized as passive category income?

A corporation determines the portion of general category income that is recharacterized as passive category income by dividing the remaining balance to be recharacterized from the general category income to passive category income by the total remaining balance to be recharacterized from all separate categories, and then multiplying the result by the general category income.

Form 1118 Schedule J

Fill out this form

Chat with document

Create Web Form

Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances

Rev. December 2020

The document outlines instructions for completing Schedule J of Form 1118 for tax years beginning in 2020. It details how to calculate adjustments to separate limitation income or (losses) categories for determining numerators of limitation fractions, year-end recharacterization balances, and overall foreign and domestic loss account balances. The schedule includes sections for Section 951A income, foreign branch income, passive category income, general category income, other income, U.S. income, year-end balances of future separate limitation income that must be recharacterized, overall foreign loss account balances, and overall domestic loss account balances.

Instructions

Form 1118 Instructions for Schedule J - Instructions for Schedule J (Form 1118)

Search tags

FAQ

What is the purpose of Part III?
Part III is used to show the carryback and carryforward of foreign tax credits. It also allows a taxpayer to elect to apply their unused foreign tax credit against their U.S. federal income tax liability in future years.
What is Schedule J (Form 1118) used for?
Schedule J (Form 1118) is used by corporations and partnerships to compute their Subpart F income, global intangible low-taxed income (GILTI), and earnings and profits under the Internal Revenue Code.
What information is required in Part I of Schedule J (Form 1118)?
Part I of Schedule J requires corporations and partnerships to report their foreign oil and gas income, foreign base company sales income, foreign branch income, and other types of foreign sources income.
What is the purpose of Part II of Schedule J (Form 1118)?
Part II of Schedule J is used to recharacterize certain items of income or loss from one category to another. It is also used to recapture previously allocated losses.
How do you fill out Part II?
To fill out Part II, you must first determine the amount of your foreign tax credit using Part I. Then, you add up any other allowable foreign tax credits and deductions to arrive at your total foreign tax credit. This is then subtracted from your U.S. federal income tax liability to determine your refund or balance due.
What is a separate limitation loss?
A separate limitation loss is an allowable loss that can offset income in a specific category, such as passive activity or resourced treaty income. It must meet certain requirements, such as being from a trade or business and not being a general loss.
What are the categories for separate limitation losses?
The categories for separate limitation losses are: passive activity loss (PAL), general limitation of the PAL, and the overall foreign loss account. A separate limitation loss can only be applied to income in one category at a time.
What is the purpose of Part III and IV of Schedule J (Form 1118)?
Part III of Schedule J is used to report and adjust overall foreign loss accounts for each separate category. Part IV is used to report and adjust overall domestic loss accounts with respect to each separate category.
What are the three parts of Schedule J?
The three parts of Schedule J are Part I, Part II, and Part III. Part I calculates the foreign tax credit, while Part II is used to calculate other foreign tax credits and deductions. Part III shows the carryback and carryforward of foreign tax credits.
What is the purpose of Schedule J?
Schedule J, also known as the Foreign Tax Credit and Other Credits/Deductions, is used to calculate the foreign tax credit and other deductions that can reduce a taxpayer's U.S. federal income tax liability.
What is Form 1118?
Form 1118, also known as the Foreign Tax Credit, is used by U.S. taxpayers to claim a credit for foreign income taxes paid on nonresident alien income. It is filed along with Form 1040.
How does a corporation determine the portion of general category income that is recharacterized as passive category income?
A corporation determines the portion of general category income that is recharacterized as passive category income by dividing the remaining balance to be recharacterized from the general category income to passive category income by the total remaining balance to be recharacterized from all separate categories, and then multiplying the result by the general category income.

HOW TO

How to fill out Form 1118 Schedule J for free, online in 3 easy steps:

1
Open form template in editor
Click on the “Get this template” button.
2
Fill out Form 1118 Schedule J
Wait a moment and you will be redirected to our online PDF Filler app.
3
Download file
Download your completed Form 1118 Schedule J for free. You can also save it to a cloud storage.

ABOUT

Tax forms

Form 1118 Schedule J is one of Tax forms that are documents used to report information about an individual's or business's income, deductions, and tax liability to the relevant tax authority. These forms are necessary to comply with tax laws and fulfill tax obligations. Tax forms vary depending on the country and the specific tax requirements in place. Here are some common types of tax forms:

Individual Tax Forms: These forms are used by individual taxpayers to report their personal income and claim deductions, credits, and exemptions. Examples include the 1040 form in the United States or the Self-Assessment Tax Return form in the United Kingdom.

Business Tax Forms: Business tax forms are used by companies, partnerships, or self-employed individuals to report their business income, expenses, and other tax-related information. Examples include the Schedule C form (Profit or Loss from Business) in the United States or the CT600 form (Company Tax Return) in the United Kingdom.

Payroll Tax Forms: These forms are used by employers to report the wages, salaries, and taxes withheld from their employees' paychecks. Examples include the W-2 form in the United States or the P60 form in the United Kingdom.

Sales Tax Forms: Sales tax forms are used by businesses to report and remit sales tax collected on taxable goods or services. The specific sales tax forms vary by jurisdiction.

Value Added Tax (VAT) Forms: VAT forms are used in countries that impose a value-added tax to report and remit VAT collected on sales and claim VAT credits for purchases. Examples include the VAT return forms used in many countries.

Estimated Tax Forms: Estimated tax forms are used to report and pay estimated taxes on income that is not subject to withholding, such as self-employment income or investment income.

These are just a few examples of the numerous tax forms that may exist. The specific forms required depend on the tax laws and regulations in your country or jurisdiction. It is important to consult the tax authority's guidelines or seek professional advice to determine which forms are applicable to your situation.

FEATURES

PDF Filler

The easiest way to fill Form 1118 Schedule J online

Quickly fill out Form 1118 Schedule J
Looking for a way to quickly fill Form 1118 Schedule J online? With our online free PDF form filler, you’ll know how to how to edit and fill this pdf document in less than a minute.
Easy to use online PDF editor
Fed up with printing out PDF files so you can edit them, before rescanning and sending them back? Edit PDF documents for free online. Use our online pdf editor to save time and paper.
Great tools, all platforms
Wondering how to fill in Form 1118 Schedule J on a Mac, or maybe how to use a PDF filler free? Our online PDF tools work on all platforms.
Secure file storage
Completed "Form 1118 Schedule J" files are stored in a secured database managed by Amazon Cloud hosting. You can delete your files from our system anytime. In any case, these files are automatically deleted after 24 hours.
Chat with Form 1118 Schedule J
Chat with "Form 1118 Schedule J" on Chatize that is a free PDF reader assistant. Ask questions and get answers from "Form 1118 Schedule J". Just click on Chat With Document button above.

Products

Docs

Websites

About