Instructions For Schedule V (Form 1120-F) - 2009 printable pdf download

2 0 09

Department of the Treasury

Internal Revenue Service

Instructions for Schedule V

(Form 1120-F)

List of Vessels or Aircraft, Operators, and Owners

arrangement, as a partner in a

income derived from demurrage,

Section references are to the Internal

partnership, or as the beneficiary of a

dispatch, and dead freight.

Revenue Code unless otherwise noted.

trust or estate.

2. Off board services. Income in this

General Instructions

category is derived from services

The term transportation income (as

performed off board any vessel or aircraft

defined in section 863(c)(3)) means any

by an operator of a vessel or aircraft,

What’s New

income derived from, or in connection

provided such services are incidental to

Lines 11 and 12 are new. Line 11 was

with:

the operation of vessels or aircraft by

•

added to require foreign corporations to

The use (or hiring or leasing for use) of

such operator. The term does not include

indicate the amount of their U.S. source

any vessel or aircraft, or

income from services performed by

•

gross transportation income which is

The performance of services directly

persons other than an operator.

exempt by treaty. Line 12 is the new total

related to the use of any vessel or aircraft.

Examples of off board services include:

line.

terminal services such as dockage,

The term vessel or aircraft includes

wharfage, storage, lights, water,

any container used in connection with a

Purpose of Schedule

refrigeration, refueling and similar

vessel or aircraft. However, the term

Use this schedule to report required

services; stevedoring and other cargo

transportation income does not include

information for each vessel or aircraft with

handling services; maintenance and

income from the disposition of vessels,

respect to which the corporation is subject

repairs; and services performed as a

containers, or aircraft.

to the 4% rate of tax on U.S. source gross

travel or booking agent.

The term income derived from or in

transportation income (USSGTI) under

connection with, the use (or hiring or

section 887.

The term operator includes the actual

leasing for use) of any vessel or

operator of a vessel or aircraft, as well as

Who Must File

aircraft means:

a time or voyage charterer of such vessel

•

Income derived from transporting

or aircraft.

Foreign corporations that are subject to

passengers or property by vessel or

the 4% tax on their USSGTI under section

aircraft;

887 must complete Schedule V (Form

•

Specific Instructions

Income derived from hiring or leasing a

1120-F).

vessel or aircraft for use in the

Important. All information reported on

transportation of passengers or property

When and Where to File

Schedule V must be in English. All

on the vessel or aircraft; and

•

amounts must be stated in U.S. dollars.

Attach Schedule V (Form 1120-F) to the

Income derived by an operator of

foreign corporation’s Form 1120-F income

vessels or aircraft from the rental or use

Throughout these instructions, when

tax return. See the instructions for Form

of containers and related equipment

the pronouns “you” and “your” are used,

1120-F for the time, place, and manner

(container related income) in connection

they are used in reference to the foreign

for filing the corporation’s income tax

with, or incidental to, the transportation of

corporation filing Form 1120-F.

return.

cargo on such vessels or aircraft by the

Columns A through D. Complete a

operator. Persons other than an operator

Definitions

separate column for each vessel or

of a vessel or aircraft do not derive

aircraft with respect to which you are

container related income. Such income is

The term United States source gross

subject to a 4% rate of tax under section

treated as rental income, not

transportation income means any gross

887. For example:

transportation income.

income (without reduction by any

•

If you were a bareboat lessor of

deductions or losses) that is

The term income derived from or in

vessels or aircraft during the tax year,

transportation income (as defined in

connection with the performance of

complete a separate column for each

section 863(c)(3)) to the extent such

services directly related to the use of a

vessel or aircraft you leased out during

income is treated as from sources within

vessel or aircraft includes the following

the tax year for which you derived

the United States under section

categories of income.

USSGTI.

863(c)(2)(A).

•

1. On board services. Income in this

If you earned income during the tax

The term does not include

category is derived from services

year from the operation of vessels or

transportation income which is:

performed on board a vessel or aircraft in

aircraft, including time or voyage charter

•

Not sourced under section 863(c)(2);

the course of the actual transportation of

hire, complete a separate column for

•

Taxable as effectively connected with

passengers or property aboard vessels or

each vessel or aircraft operated by you

the corporation’s trade or business in the

aircraft. Examples of income in this

during the tax year for which you derived

United States pursuant to section

category include income from renting

USSGTI.

•

887(b)(4); or

staterooms, berths, or living

If you earned income during the tax

•

Taxable in a possession of the United

accommodations; furnishing meals and

year from providing services directly

States under a provision of the Code, as

entertainment; operating shops and

related to the use of vessels or aircraft,

made applicable in such possession.

casinos; providing excess baggage

complete a separate column for each

Note. Foreign corporations may derive

storage; and income from the

vessel or aircraft for which such services

USSGTI directly, from participation in a

performance of personal services by

were performed and for which you

pool, joint venture, joint service

individuals. The term also includes

derived USSGTI.

Cat. No. 51664Q

Instructions For Schedule V (Form 1120-F) - 2009

Related Articles

Related forms

Related Categories