Instructions For Schedule K (Form 1118) Page 2
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1
2
3II, line 11 exceeds the sum of lines 1
6 is completed only if the corporation has
preceding tax year must be an excess
through 4 of Form 1118, Schedule B, Part
current year excess foreign taxes (defined
limitation year (as defined on page 1).
II by $250). The amount on line 3, column
on page 1). Enter in column (xiii) (the
Note. When this line 7 carryback amount
(i) is $80. The amount on line 3, column
current tax year column) the amount of
(ii) is $60. The amount on line 3, column
is subtracted from line 6, the difference is
the corporation’s unused foreign tax for
(iii) is $130. The amount on line 3 of all
the amount of the foreign tax carryover
the current tax year (i.e., the amount by
subsequent columns is irrelevant for
generated in the current tax year which
which the sum of lines 1 through 4 of
purposes of this example. Corporation A
will be carried forward to the subsequent
Form 1118, Schedule B, Part II, exceeds
enters $80 on line 4, column (i); $60 on
the amount on Form 1118, Schedule B,
tax year.
line 4, column (ii), $110 on line 4, column
Part II, line 11). Also enter the same
(iii), the $250 subtotal on the line 4,
amount in the “Totals” column (column
Line 1 Reconciliation
column (vii), the $250 subtotal on line 4,
(xiv)).
column (viii), and the $250 total on line 4,
Worksheet
column (xiv).
Line 7. Actual or estimated amount of
Use the worksheet on page 3 to compute
line 6 carried back to the prior tax year.
The line 4, column (xiv) total
the amounts to be entered on line 1 of the
Enter the amount of line 6 carried back to
!
cannot exceed the amount of the
corporation’s Schedule K.
the first preceding tax year. If, at the time
current year excess limitation.
CAUTION
the corporation files its 2009 income tax
Lines 2 through 5. Use the instructions
Line 5. Foreign tax carryover expired
return, the actual amount is not available,
for lines 4 through 7 of the Schedule K
unused in current tax year. Line 5 is
an estimated or tentative amount may be
th
above to complete lines 2 through 5,
completed only with respect to the 10
entered on line 7. If an estimated amount
respectively, of the Line 1 Reconciliation
preceding tax year (and the “Subtotal”
is entered on line 7 and this amount
th
and “Totals” columns). For the 10
Worksheet.
differs from the actual carryback amount,
preceding tax year (column (i)), combine
the difference will be entered on line 2a of
lines 3 and 4 and enter the result on line
the subsequent year Schedule K (Form
Additional Information
5, column (i).
1118).
For more information, see section 904(c)
Line 6. Foreign tax carryover
and Regulations section 1.904-2 and
generated in current tax year. With
Note. In order to carry back amounts to
respect to a given separate limitation, line
the first preceding tax year, that first
Temporary Regulations section 1.904-2T.
-2-
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