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Form 1118, Foreign Tax Credit - Corporations

Form 1118, Foreign Tax Credit

Corporations use this form to compute their foreign tax credit (FTC) for certain taxes paid or accrued to foreign countries or U.S. possessions.
FTC returns include a workpaper for sourcing income and expense. The system transfers Subpart F, Section 956 Investment in U.S. Property, Deemed Paid Credits, and other income inclusion amounts from foreign entities as tax adjustments to the FTC (domestic) entities. The system can also transfer deemed paid credits to the Foreign Income Taxes screen to use on Form 1118, Schedule B.
International Computes calculate the foreign tax credit and the system transfers those amounts to Form 1118, Schedules A, B, C, D, E, H, I, J, and K.

Transfer income inclusions to an FTC entity

Once you finish entering your foreign entity data and successfully run the international computes for E&P, Look Through, and Subpart F, you are ready to complete your Foreign Tax Credit returns.
The Foreign Income Inclusion reports in the Subpart F screens provide totals by entity for income adjustments. These amounts must be recorded in the appropriate FTC binder. This happens by either manually entering them, importing them from a spreadsheet file, or setting up the system to transfer them automatically. To transfer these amounts automatically, you must create or modify the tax adjustments, create a Transfer Mapping Chart and select options in
Binder Properties
.

This article applies to:

  • Product: ONESOURCE International Tax
  • Subject: Credits
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