Form 1118 - Instructions For Schedule J Sheet (Page 4 of 4) in pdf

Form 1118 - Instructions For Schedule J Sheet Page 4

list of possible reductions (including

Part III

Part IV

recapture in post-2007 tax years).

Line 1. Enter the ending balances from

Note. A U.S. source loss that is carried

last year’s schedule.

back as part of a net operating loss to

offset foreign income in a prior qualified

Lines 2, 3, and 4. Show any

Note. For the 2007 tax year, the

tax year will result in an increase to the

adjustments made to the overall foreign

beginning balances are zero.

overall domestic loss account in the year

loss accounts for each separate category

Lines 2, 3, and 5. Show any

in which the loss arose, not the earlier

during the tax year. See Regulations

adjustments made to the overall domestic

year to which the loss was carried back to

section 1.904(f)-1(d) for a list of possible

loss account with respect to each

offset the foreign income.

additions to the accounts. See

separate category during the tax year.

Regulations section 1.904(f)-1(e) for a list

Line 6. Enter the year-end balances of

See Temporary Regulations section

of possible reductions (including

the overall domestic loss account with

1.904(g)-1T(d) for a list of possible

recapture).

respect to each separate category.

additions to the accounts. See Temporary

Line 6. Enter the year-end balances of

Regulations section 1.904(g)-1T(e) for a

the overall foreign loss accounts for each

separate category.

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Form 1118 - Instructions For Schedule J Sheet Page 4