Instructions For Schedule V (Form 1120-F) - List Of Vessels Or Aircraft, Operators, And Owners - 2015

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2015
Department of the Treasury
Internal Revenue Service
Instructions for Schedule V
(Form 1120-F)
List of Vessels or Aircraft, Operators, and Owners
pool, joint venture, joint service
storage; and the performance of personal
Section references are to the Internal Revenue
Code unless otherwise noted.
arrangement, as a partner in a
services by individuals. The term also
partnership, or as the beneficiary of a trust
includes income derived from demurrage,
Future Developments
or estate.
dispatch, and dead freight.
For the latest information about
2. Off board services. Income in this
The term transportation income (as
developments related to Schedule V
category is derived from services
defined in section 863(c)(3)) means any
(Form 1120-F) and its instructions, such
performed off board any vessel or aircraft
income derived from, or in connection
as legislation enacted after they were
by an operator of a vessel or aircraft,
with:
published, go to
provided such services are incidental to
The use (or hiring or leasing for use) of
the operation of vessels or aircraft by such
any vessel or aircraft, or
General Instructions
operator. The term does not include
The performance of services directly
income from services performed by
related to the use of any vessel or aircraft.
Purpose of Schedule
persons other than an operator. Examples
of off board services include: terminal
The term vessel or aircraft includes any
Schedule V (Form 1120-F) is used by a
services such as dockage, wharfage,
container used in connection with a vessel
foreign corporation to report basic
storage, lights, water, refrigeration,
or aircraft. However, the term
information for each vessel or aircraft with
refueling and similar services; stevedoring
transportation income does not include
respect to which the corporation is subject
and other cargo handling services;
income from the disposition of vessels,
to the 4% rate of tax on U.S. source gross
maintenance and repairs; and services
containers, or aircraft.
transportation income (USSGTI) under
performed as a travel or booking agent.
section 887.
The term income derived from, or in
The term operator includes the actual
connection with, the use (or hiring or
Who Must File
operator of a vessel or aircraft, as well as
leasing for use) of any vessel or
a time or voyage charterer of such vessel
Foreign corporations that are subject to
aircraft means:
or aircraft.
the 4% tax on their USSGTI under section
Income derived from transporting
887 must complete Schedule V.
passengers or property by vessel or
Specific Instructions
aircraft;
When and Where to File
Income derived from hiring or leasing a
Important. All information reported on
vessel or aircraft for use in the
Attach Schedule V (Form 1120-F) to the
Schedule V must be in English. All
transportation of passengers or property
foreign corporation's Form 1120-F income
amounts must be stated in U.S. dollars.
on the vessel or aircraft; and
tax return. See the Instructions for Form
Throughout these instructions, when
Income derived by an operator of
1120-F for the time, place, and manner for
the pronouns “you” and “your” are used,
vessels or aircraft from the rental or use of
filing the corporation's income tax return.
they are used in reference to the foreign
containers and related equipment
corporation filing Form 1120-F, U.S.
Definitions
(container related income) in connection
Income Tax Return of a Foreign
with, or incidental to, the transportation of
Corporation.
cargo on such vessels or aircraft by the
The term United States source gross
operator. Persons other than an operator
transportation income (USSGTI) means
Columns A through D. Complete a
of a vessel or aircraft do not derive
any gross income (without reduction by
separate column for each vessel or aircraft
container related income. Such income is
any deductions or losses) that is
with respect to which you are subject to a
treated as rental income, not
transportation income (as defined in
4% rate of tax under section 887. For
transportation income.
section 863(c)(3)) to the extent such
example:
income is treated as from sources within
If you were a bareboat lessor of vessels
The term income derived from, or in
the United States under section 863(c)(2)
or aircraft during the tax year, complete a
connection with, the performance of
(A).
separate column for each vessel or aircraft
services directly related to the use of a
you leased out during the tax year for
vessel or aircraft includes the following
The term does not include
which you derived USSGTI.
categories of income.
transportation income which is:
If you earned income during the tax
Not sourced under section 863(c)(2);
1. On board services. Income in this
year from the operation of vessels or
category is derived from services
Taxable as effectively connected with
aircraft, including time or voyage charter
performed on board a vessel or aircraft in
the corporation's trade or business in the
hire, complete a separate column for each
the course of the actual transportation of
United States pursuant to section 887(b)
vessel or aircraft operated by you during
passengers or property aboard vessels or
(4); or
the tax year for which you derived
aircraft. Examples of income in this
Taxable in a possession of the United
USSGTI.
category include income from renting
States under a provision of the Code, as
If you earned income during the tax
staterooms, berths, or living
made applicable in such possession.
year from providing services directly
accommodations; furnishing meals and
related to the use of vessels or aircraft,
Note. Foreign corporations may derive
entertainment; operating shops and
complete a separate column for each
USSGTI directly, from participation in a
casinos; providing excess baggage
Jun 08, 2015
Cat. No. 51664Q

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