Looking for a Form 1120-f Templates? Download it for free!

2012

Department of the Treasury

Internal Revenue Service

Instructions for Schedule V

(Form 1120-F)

List of Vessels or Aircraft, Operators, and Owners

Note. Foreign corporations may derive

entertainment; operating shops and

Section references are to the Internal Revenue

Code unless otherwise noted.

USSGTI directly, from participation in a

casinos; providing excess baggage

pool, joint venture, joint service

storage; and the performance of personal

General Instructions

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,

or estate.

dispatch, and dead freight.

Future Developments

2. Off board services. Income in this

The term transportation income (as

For the latest information about

category is derived from services

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

developments related to Schedule V

performed off board any vessel or aircraft

income derived from, or in connection

(Form 1120-F) and its instructions, such

by an operator of a vessel or aircraft,

with:

as legislation enacted after they were

provided such services are incidental to

The use (or hiring or leasing for use) of

published, go to

the operation of vessels or aircraft by such

any vessel or aircraft, or

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.

persons other than an operator. Examples

Purpose of Schedule

of off board services include: terminal

The term vessel or aircraft includes any

services such as dockage, wharfage,

container used in connection with a vessel

Schedule V (Form 1120-F) is used by a

storage, lights, water, refrigeration,

or aircraft. However, the term

foreign corporation to report basic

refueling and similar services; stevedoring

transportation income does not include

information for each vessel or aircraft with

and other cargo handling services;

income from the disposition of vessels,

respect to which the corporation is subject

maintenance and repairs; and services

containers, or aircraft.

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

performed as a travel or booking agent.

transportation income (USSGTI) under

The term income derived from, or in

section 887.

The term operator includes the actual

connection with, the use (or hiring or

operator of a vessel or aircraft, as well as

leasing for use) of any vessel or

Who Must File

a time or voyage charterer of such vessel

aircraft means:

or aircraft.

Foreign corporations that are subject to

Income derived from transporting

the 4% tax on their USSGTI under section

passengers or property by vessel or

Specific Instructions

887 must complete Schedule V.

aircraft;

Income derived from hiring or leasing a

When and Where to File

vessel or aircraft for use in the

Important. All information reported on

transportation of passengers or property

Schedule V must be in English. All

Attach Schedule V (Form 1120-F) to the

on the vessel or aircraft; and

amounts must be stated in U.S. dollars.

foreign corporation's Form 1120-F income

tax return. See the Instructions for Form

Income derived by an operator of

Throughout these instructions, when

1120-F for the time, place, and manner for

vessels or aircraft from the rental or use of

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

containers and related equipment

filing the corporation's income tax return.

they are used in reference to the foreign

(container related income) in connection

corporation filing Form 1120-F, U.S.

Definitions

with, or incidental to, the transportation of

Income Tax Return of a Foreign

cargo on such vessels or aircraft by the

Corporation.

operator. Persons other than an operator

The term United States source gross

Columns A through D. Complete a

of a vessel or aircraft do not derive

transportation income (USSGTI) means

separate column for each vessel or aircraft

container related income. Such income is

any gross income (without reduction by

with respect to which you are subject to a

treated as rental income, not

any deductions or losses) that is

4% rate of tax under section 887. For

transportation income.

transportation income (as defined in

example:

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

The term income derived from, or in

If you were a bareboat lessor of vessels

income is treated as from sources within

connection with, the performance of

or aircraft during the tax year, complete a

the United States under section 863(c)(2)

services directly related to the use of a

separate column for each vessel or aircraft

(A).

vessel or aircraft includes the following

you leased out during the tax year for

categories of income.

The term does not include

which you derived USSGTI.

transportation income which is:

If you earned income during the tax

1. On board services. Income in this

year from the operation of vessels or

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

category is derived from services

aircraft, including time or voyage charter

Taxable as effectively connected with

performed on board a vessel or aircraft in

hire, complete a separate column for each

the corporation's trade or business in the

the course of the actual transportation of

vessel or aircraft operated by you during

United States pursuant to section 887(b)

passengers or property aboard vessels or

the tax year for which you derived

(4); or

aircraft. Examples of income in this

USSGTI.

Taxable in a possession of the United

category include income from renting

If you earned income during the tax

States under a provision of the Code, as

staterooms, berths, or living

year from providing services directly

made applicable in such possession.

accommodations; furnishing meals and

Dec 05, 2012

Cat. No. 51664Q

Instructions For Schedule V (Form 1120-F) - List Of Vessels Or Aircraft, Operators, And Owners - 2012

Related Articles

Related forms

Related Categories