Form 8858, Schedule J data entry

While Schedule J must be completed manually in Organizer for FTC binders, automation's available for foreign entities provided the Divisional Consolidation sources at the division level.
If a Divisional Consolidation's set to enter Sourcing, Apportionment and Tax data at the Divisional Consolidation level, information in the members'
Current Year Taxes Paid / Accrued
screen will be ignored, no amounts will transfer to members' Form 8858, Schedule J, and Form 5471 Schedule E / 8858 Schedule J by Basket Report won't be available for the divisions.
To review the sourcing setting of a Divisional Consolidation, go to its
Binder Properties
,
International
. There's also an International Data Entry Report, that when pulled from the Top Consolidation, allows review of this setting for all Divisional Consolidation members. To access the report, go to the Topcon to
Foreign Tax Credit
,
International Reports
,
International Data Entry Reports
,
Binder Properties: Foreign Entity
.
Enter data in the Current
Year Taxes Paid / Accrued
screen at a transaction/payment level and it's associated with a specific tax account in the International Summary Chart. If the total functional currency tax entries for an account differs from the account balance in the Income Sourcing Workpaper by more than the rounding amount in
Binder Properties
,
Charts
, the system generates a comprehensive edit error during Subpart F calculations.
Since Schedule J requires reporting at a basket level, each tax detail line gets spread to baskets during Subpart F calculations using the basket ratios for the related international account as documented on the E&P by Basket Report - after Dividend Look Thru.
  • If Look Thru's done at the division level, the ratio will be computed at the division level.
  • If Look Thru's done at the Divisional Consolidation level, the ratio will be computed at the Divisional Consolidation level and applied to all division members.
  • If an allocation ratio's unavailable, the transaction will be allocated to general limitation.
When
International Compute
,
Transfer to US5471, US8865, US8858
is run for a Divisional Consolidation, line-by-line detail information gets pushed to the face of the Schedule J page in Organizer (not “hidden” screens as is the case with Schedule C & F) for each member. FOGI balances get included in the amounts reported in the General Limitation column. Since the US and GILTI baskets are to be reported on independent rows for a transaction within the Other column, the system includes any US basket amount on the same line as foreign branch, passive and general limitation, isolating GILTI on a different row. 901(j) amounts won't carry to the form. A comprehensive edit error will be generated if GILTI and Foreign Branch Income source codes are used in a division that isn't a member of a foreign partnership Divisional Consolidation with at least 1 direct FTC owner.
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