Source code definition of international sourcing

System and user-defined source codes are used to allocate and apportion account balances or specific classes or groups of income in the Sourcing Workpaper.
Source codes differentiate income between Subpart F and non-Subpart F income, Section 904(d) basket, passive income categories for high tax kickout calculations, 863(b) income, for U.S. and foreign source income for Section 904(h) calculations, and FDII Type for Form 8993.
Once defined, source code definitions are available to all binders within that year and can't be deleted. You can create Sourcing Charts to display only specified source codes in a binder's Souring Workpaper. You can either manually enter source codes or import them.

Source code characteristics

  • Source codes 1 through 99 are reserved for system-defined source codes.
  • User-defined source codes can be 15 digits ranging form 100 through 99999999999999.
  • There are 14 system-defined source codes.

Add user-defined source codes

  1. Select
    Charts
    ,
    International Sourcing
    ,
    Source Code Definition
    .
  2. System-defined codes appear with a blue background and can't be changed.
  3. Select the year.
  4. To add a new source code, select
    Add
    .
  5. Enter a 3 to 15-digit unique number for the new source code. User-defined source codes must be in the range of 100 to 99999999999999.
  6. Enter a description for the new source code.
  7. In column FDII Type, select
    1
    to populate Form 8993 Part II Lines 9 - 13, column
    (A) All sales of general property
    .
    1. Select
      2
      to populate column
      (B) All sales of intangible property
      .
    2. Select
      3
      to populate column
      (C) All services
      .
    3. Select
      4
      to populate Form 8993
      Part I Line 2c Financial Services Income
      .
    4. Select
      5
      to populate
      Line 2e Domestic oil and gas extraction income
      .
  8. Complete the remaining fields, then select
    Save
    .
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