Instructions For Schedule H (Form 1120-F) - 2017 (Page 6 of 6) in pdf

is allocated to ECI under Regulations

Note. Amounts paid or accrued on

hedging transactions or from

section 1.882-5 and reported on

the Schedule L books to the home

securities trading or non-global

Schedule I (Form 1120-F).

office are not determinative of the

dealing operations. If notional

amount of home office expense

principal contract periodic expense is

Line 32b. Enter on line 32b any

allocated and apportioned to ECI on

allocated and apportioned under the

interbranch interest expense that is

Schedule H, Part II, line 20.

global dealing rules of Proposed

included in the amount reported on

Regulations section 1.863-3(h), such

line 31.

Line 36. Add the amounts on lines

amounts should be included on

32a through 35 and enter the total on

Line 33. Enter on line 33 any bad

line 34 and, therefore, are not

line 36. This amount reflects the

debt expense that is included in the

definitely related to ECI or non-ECI

deductions included on line 31 for

amount reported on line 31. Any

under Regulations section 1.861-8

which there are special rules to which

portion of the amount eliminated on

and Temporary Regulations section

the general allocation and

line 33 that is allocated and

1.861-8T.

apportionment rules under

apportioned to ECI is reported directly

Regulations sections 1.861-8 and

Note. Periodic expenses from

on Form 1120-F, Section II, line 15.

1.861-17 and Temporary Regulations

notional principal contracts may be

Line 34. Enter on line 34 other

section 1.861-8T do not apply.

allocated and apportioned to ECI and

third-party expenses that are included

non-ECI in accordance with the ECI

Line 37. Subtract the amount on

in the amount reported on line 31 and

and non-ECI treatment of the item(s)

line 36 from the amount on line 31 and

that are not allocated and apportioned

the notional principal contract hedges.

enter the difference on line 37. The

between ECI and non-ECI under

amount reported on line 37 is

Line 38b. Enter on line 38b all other

Regulations sections 1.861-8 and

allocated and apportioned to ECI and

deductions included in the amount

1.861-17 and Temporary Regulations

non-ECI under Regulations sections

reported on line 37 that are definitely

section 1.861-8T. Periodic expense

1.861-8 and 1.861-17 and Temporary

related to ECI or non-ECI under

from a notional principal contract is

Regulations section 1.861-8T and

Regulations sections 1.861-8 and

not allocated and apportioned under

reconciled on lines 38a through 41.

1.861-17 and Temporary Regulations

Regulations section 1.861-8 and

section 1.861-8T.

Temporary Regulations section

Lines 38a Through 41.

1.861-8T if the amount is includible in

Reconciliation of Allocable

Line 39. Add lines 38a and 38b and

the profits and losses of a global

Expenses on Books Under

enter the total on line 39 for each of

dealing operation and the corporation

columns (a) through (c). The amounts

Regulations Section 1.861-8

allocates and apportions such

on line 39 are the portion of total

(from line 37)

amounts under Proposed Regulations

deductions reported on line 37 that

section 1.863-3(h). Such periodic

The amount of deductions reported on

are definitely related to ECI and

expense is subject to allocation and

line 37 that is allocated and

non-ECI.

apportionment under Proposed

apportioned to ECI and non-ECI is

Line 40. Enter on line 40 the

Regulations section 1.863-3(h) in

reported on lines 38a through 41,

deductions included on line 37 that

accordance with the principles of

columns (a) through (c). With respect

are not definitely related to ECI or

to each of lines 38a through 41, enter

Proposed Regulations section

non-ECI that are apportioned to ECI

the amount included on line 37 that is

1.482-8. If such periodic expense is

and non-ECI under Regulations

allocated or apportioned to ECI in

included on line 31, it should be

sections 1.861-8 and 1.861-17 and

column (a) and the amount allocated

included on line 34 and reported

Temporary Regulations section

separately on Form 1120-F, Section II,

or apportioned to non-ECI in column

1.861-8T. The total on line 40, column

as either part of the global dealing

(b). Add columns (a) and (b) for each

(c), must equal line 37 minus line 39,

income reported on Form 1120-F,

line and enter the total amount in

column (c).

Section II, line 10, or as a separately

column (c).

identified deduction under Form

Line 41. Add lines 39 and 40 and

Line 38a. Enter on line 38a the

1120-F, Section II, line 27.

enter the total on line 41 for each of

amount of derivative transaction

columns (a) through (c). The amount

Line 35. Enter on line 35 all

deductions included on line 37 that

entered on line 41, column (a), is the

interbranch expenses, other than

are definitely related to ECI or

total amount of deductions included

interbranch interest expense, that are

non-ECI under Regulations section

on line 37 that is allocated and

included in the amount reported on

1.861-8 and Temporary Regulations

apportioned to ECI. These deductions

section 1.861-8T. Deductions

line 31. The interbranch amounts

are included on Form 1120-F,

included on line 38a are periodic

reportable on line 35 include home

Section II, lines 12, 13, 14, 16, 17, 19

expense from notional principal

office charges reflected on the

through 25, and 27. The total amount

Schedule L books for home office

contracts that are sourced under

on line 41, column (c), must equal the

management services provided to the

Regulations section 1.863-7 with

amount on line 37.

U.S. trade or business.

respect to non-dealer securities

-6-

Instructions for Schedule H (Form 1120-F)

Instructions For Schedule H (Form 1120-F) - 2017 Page 6

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