M M D D Y Y Y Y
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Form CIT, Page 10
Period End Date
FEIN
Schedule WE - Water’s Edge Schedule
Part I.
Water’s Edge Election
1. Enter the tax periods for which a valid water’s edge election has been approved
__________________________
__________________________________________________________________________________________
Part II.
Calculation of Deemed Dividends Received from Corporations Incorporated Outside of the United States
1. Enter the positive federal line 30 income of your 80/20 companies. (See instructions) ...............1.
00
2. Enter your consolidated 1120 positive federal line 30 income. (See instructions) ........................2.
00
3. Divide the amount on line 1 by the amount on line 2. This is the ratio of your 80/20 positive
.
income to your consolidated 1120 positive income ......................................................................3.
4. Enter the tax liability, after tax credits, which you reported on your consolidated 1120 ................4.
00
5. Multiply line 3 by line 4. This is the federal tax liability associated with your 80/20 companies ...5.
00
6. Enter the section 78 gross-up received by your 80/20 companies (include schedule) ................6.
00
7. Subtract the total of lines 5 and 6 from line 1; enter the result. This is the after-tax net
00
income of your 80/20 companies. If the result is less than zero, enter zero ................................7.
8. Enter the after-tax net income of all unconsolidated 80/20 companies ........................................8.
00
9. Add lines 7 and 8; enter the result. This is your total after-tax net income ...................................9.
00
10. Multiply line 9 by 20% and enter the result here and on line 2(g) of Form CIT,
00
page 3. This is your 20% deemed dividend. ...........................................................................10.
Part III. List your 80/20 Companies. Include a separate sheet if necessary.
1. Name
2. FEIN
3. Income/Loss
4. Dividends
Received
00
00
00
00
00
00
00
00
00
00
00
00
00
00
Totals
00
00
Part IV. List your Controlled Foreign Corporations. Include a separate sheet if necessary.
1. Name
2. Country of Incorporation/Organization
3. Income/Loss
00
00
00
00
00
00
00
Total
00
*14EP1001*
*14EP1001*