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Form 1118, Foreign Tax Credit - Corporations

Data entry for foreign income taxes

The information you enter gets used in the foreign tax credit and high-tax kickout calculations and transfers to Form 1118, Schedule B.
During a TAS Consolidation, information from member binders is aggregated for divisional consolidations that source at the division level. If sourcing's done at the divisional consolidation level instead, enter amounts directly in the divisional consolidation's workpaper. The sourcing indicator's located in
Binder Properties
,
FTC
.
  1. Data entry can be found in
    TAS
    ,
    Foreign Tax Credit
    ,
    Foreign Income Taxes
    .
  2. Select the
    Source Code
    . The
    Country Code
     and the
    Date Paid
     carry from the
    Paid or Accrued
     section to the
    Withheld Deemed Paid and Adjustment
     sections.
  3. To enter data in the
    Deemed Paid
     section, enter the
    Country Code
     and
    Date
     on the
    Paid or Accrued
     section.
  4. Select
    Deemed Paid
    .
Deemed paid credits from lower tier foreign entities can be transferred to their FTC parent's
Foreign Income Taxes
 screen to use on Form 1118, Schedule B. The amounts transferred from your foreign entities are in the
Deemed Paid Taxes
 (from Intl Transfer) column. To override the transferred information during international calculations, enter zero or an amount in the
Deemed Paid Taxes
 (override) column.

Foreign tax credit selections in a Top Consolidation binder

The Top Consolidation binder is a Foreign Tax Credit (FTC) binder with functionality for CFC and FTC calculations. In the binder, there are various selections and information that you must enter before you can run Taxable Income by Source (TIBS) and FTC calculations and transfer the data to Form 1118.

This article applies to:

  • Product: ONESOURCE International Tax
  • Return type: 1120 Corporation
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