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Foreign entity returns

Foreign entity transfer to US8992 compute

Controlled foreign corporation

Select the following options for this entity to transfer amounts to the form during compute:
Part I
  1. In
    Binder Properties
    , in the
    Return Information
     section, for
    International Filing Type
     is
    Foreign Entity
    .
  2. When there's a value in
    Employer ID (EIN/FEIN)
     then the
    ID Type
     is
    EIN
    .
  3. When there isn't a value in
    Employer ID (EIN/FEIN)
     then the
    ID Type
     is
    Foreign.
  4. The
    Reference ID Number
     transfers from the
    Binder Properties
     tab
    General Information
     under
    Binder Information
    .
Part II
  1. In
    Binder Properties
    , select the
    International
     tab.
  2. For
    Foreign Entity Type
     select
    Controlled Foreign Corporation
    .
  3. For
    International Entity Type
     select
    Foreign Entity
    .
Part III
After you make changes to the binder, compute
E&P, Look Through
 (optional), and
Subpart F
.

U.S. shareholder

Part I
  1. Go to
    Entity Properties
    , then the
    Return Information
     section.
  2. Select
    Foreign Tax Credit
     for the
    International Filing Type
    .
  3. The
    U.S. Shareholder's Name
     and
    EIN
    values populate from the
    Entity Information
    .
  4. Part II
  5. In Organizer, select
    Shareholder Calculation of GILTI in U.S. Shareholders with CFC amounts
     and in consolidations with members with amounts.
  6. Select
    Foreign Information
    ,
    Shareholder Calculation of GILTI
    ,
    Generate Form 8992
    .
    1. Select
      Suppress Compute Form 8992
       to prevent Form 8992 from populating.
    2. Select
      Suppress consolidation of Form 8992 organizer
       to prevent Form 8992 from consolidating.
    3. Under
      Form Used (Override)
      , select
      Blank
       to let the software to calculate
      Schedule A
       or
      Schedule B
      .
    4. In Organizer, select
      Foreign Information
      , then
      Shareholder Calculation of GILTI
      . Select
      Schedule B
       in
      INTL Transfer Options
       to prevent updates.
Part III
If the U.S. Shareholder owns less than 10% of the CFC, for a Foreign Entity, select the CFC in the top consolidation in the
CFC Overrides
 under
Foreign Tax Credit.
  1. In the column
    Deemed Paid Credit Test Override
    , select
    Pass Ownership Test for Deemed Paid Credit Purpose
    .
  2. If the column
    Parent Type
     is
    U.S.
    or
    US/DO
    , then in column
    US Shareholder Override
    , select
    Treat this entity as a US Shareholder
    .
  3. Select
    Save
    .
Part IV
After you make changes to the binder, compute
E&P, Look Through
 (optional), and
Subpart F
.

Consolidated calculation reports

Subpart F
 computes the
Subpart F Reports
 for
GILTI (Global Intangible Low Taxed Income)
.
Part I
Consolidated Group GILTI (Global Intangible Low Taxed Income) Tested Items
 populates with the amounts for each
CFC
 multiplied by the total U.S. shareholder ownership percentage summed to the consolidated totals or Tested Income, Test Loss, Qualified Business Asset Investment (QBAI), Tested Interest Income, Tested Interest Expense, and Specified Interest Expense.
  • Verify that the
    Last Subpart F Calculation
     is same date and time for all CFCs.
  • Verify that the
    EIN or Reference ID
     is populated for
    all
     CFCs.
Part II
The
Form 8992 Schedule A – U.S. Shareholder CFC Detail Report
 populates with the back allocation to each
U.S. shareholder
. Each
CFC
 owned by each U.S. shareholder transfers, in Organizer, in the
Foreign Information
 folder, in
U.S. shareholders
 to
Shareholder Calculation of GILTI
.
Divisional Consolidations data transfers to the
division
 with the Parent Binder, in column
Action
, in the
Binder Properties
 on the
Members
 tab.

Compute and consolidate

Part I
  1. In the Top consolidation binder, on the
    International Compute
     tab under
    Foreign Tax Credit
    , for
    TIBS, FTC
    , select
    Transfer to US8992
    .
  2. Select
    Compute
    .
Part II
  1. Consolidate
     the top consolidation with
    Consolidate this binder and compute all binders with computes pending + consolidate and compute all underlying consolidations regardless of compute status
    selected and with
    Organizer
    selected under
    What to Consolidate
     for all consolidations 2 times to:
    1. Consolidate
      Schedule B Part I
       and back allocate to
      8992 Schedule B Part II
      .
    2. Consolidate
      Schedule B Part II
      .
Part III
If the consolidation includes
insurance
 returns,
Organizer Consolidate
 the insurance divisional consolidations, insurance subgroups, nonlife consolidation, and life-nonlife consolidation.

This article applies to:

  • Product: ONESOURCE Income Tax
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