Qualified Deficits

The
Qualified Deficits
screen is used to reduce the amount included in the gross income of any U.S. shareholder under Section 951(a)(1)(A)(i) (Subpart F income) for any taxable year that is attributable to a qualified activity.
There are six system defined source codes that are identified as qualified activities in the
Source Code Definition
screen. The setting of the Qualified Activity Indicator defaults for any user defined source code based on the FTC and Subpart types.
Source Code
DESCRIPTION
63
Financial Services, FPHCI, Qualified Activity
68
General Limitation Income, FPHCI, Qualified Activity
69
General Limitation Income, Insurance, Qualified Activity
70
General Limitation Income, FBC Sales, Qualified Activity
71
General Limitation Income, FBC Service, Qualified Activity
72
General Limitation Income, FBC Oil Related, Qualified Activity

Entering Qualified Deficit Information

  1. On the TAS navigation tree, select
    Foreign Entity > Other Adjustments > Qualified Deficit
    .
  2. Select a
    Source of Deficit
    source code from the dropdown.
  3. Enter the deficit amount in the
    Amount
    column. Enter amounts as positive numbers.
  4. Click
    Save
    .
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