Schedule J: Accumulated E&P of CFC - IRS Form 5471
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- Опубліковано 2 сер 2022
- Schedule J contains information about the CFC's Earnings and Profits (E&P). More importantly, Schedule J tracks the corporations various balances of Previously Taxed E&P (PTEP) at the beginning of the year, current year additions/subtractions & distributions, and ending year balances.
The corporation's E&P can be categorized into three baskets, which are Section 959(c)(3), Section 959(c)(2) and Section 959(c)(1). In our example, the U.S. shareholder has a Subpart F inclusion related to Foreign Personal Holding Company (FPHC) income which creates an inclusion under Section 951(a)(1)(A). The earnings are added to the Section 959(c)(2) basket.
This is the 12th video in a series which covers the preparation of IRS Form 5471 for the 2021 tax year. Each schedule has a separate video within the playlist titled "IRS Form 5471 - Beginner Series". A list of all of the videos with links is included in the description below.
The IRS Form 5471 is filed by U.S. persons that have an interest in a Controlled Foreign Corporation (CFC). The sample Form 5471 covered in this playlist is for a U.S. person that is a majority shareholder (75%) of a Cayman Island's Corporation. The remaining 25% of the stock is owned by a non-U.S. shareholder.
The CFC invests in various stocks, bonds & other investments, so the earnings of the CFC will constitute Subpart F income, specifically Foreign Personal Holding Company (FPHC) income under Section 954(c).
The link to the complete playlist and each individual video is below.
Playlist: • IRS Form 5471 - Beginn...
Complete list of videos in the tutorial. We recommend watching in the order presented.
1. Introduction & Page 1 of Form 5471: • How to Prepare IRS For...
2. Schedule B: U.S. Shareholders: • Schedule B: US Shareho...
3. Schedule C: Income Statement: • Schedule C: Income Sta...
4. Schedule F: Balance Sheet: • Schedule F: Balance Sh...
5. Schedule H: Current E&P: • Schedule H: Current E&...
6. Schedule I & Worksheet A: Shareholder's Income from FC: • Schedule I: Summary of...
7. Schedule G: Other Information: • Schedule G: Other Info...
8. Schedule E: Income & Taxes Paid: • Schedule E: Income Tax...
9. Schedule E-1: Taxes Related to Type of Income: • Schedule E-1: Taxes Pa...
10. Schedule M: Related Party Transactions: • Schedule M: Transactio...
11. Schedule I-1: GILTI: • Schedule I-1: Global I...
12. Schedule J: E&P of Corporation: • Schedule J: Accumulate...
13. Schedule P: Previously Tax E&P of US Shareholder: • Schedule P: Previously...
14. Schedule Q: CFC Income by Groups: • Schedule Q: CFC Income...
15. Schedule O: Organization & Stock Acquisition: • Schedule O Part 1 & 2:...
16. Category 3 Indebtedness Statement: • Category 3: Indebtedne...
17. Schedule R: Dividend Distributions: • Schedule R: Distributi...
18. Where to Report Subpart F Inclusion: • Where to Report Subpar...
For a larger database of tutorials, please visit our website and search for your question:
knottlearning.com/
DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#Form5471 #ControlledForeignCorporation #CFC #SubpartF
Thank you very much for your time and effort! I would never have understood this form without your explanations.
Happy to help!
Very Well explained this Schedule Thanks...you really simplified it by your way of explaination😊
Excellent explanation for beginner of form 5741. Thanks a million!
Thanks for the helpful videos!
Thank you for sharing on the complex topic on you tube. I just happened to see it today. You did a nice presentation by showing examples, made the topic a bit easy understandable. I have a question. You P& L does not list foreign tax paid to get net income after tax. If yes, the foreign tax paid is a deduction to calculate sub part F income, not taken as a foreign tax credit, right? Just want to clarify. Thank you.
Why more complex tutorials in the future? What about simple ones like for US entrepreneurs who own CFCs and this is their only income, etc. Or is the market too thin? Thanks-I did learn a bit from this one!
If an upper-tier CFC ("Upper") receives a dividend from a lower-tier CFC ("Lower"), where all of Lower's e&p is taxed to US shareholder of Upper under GILTI, and where Upper's entire e&p is the dividend from Lower (minus some admin expenses), then when preparing Upper's Sch J, it's not clear from the instructions whether you put Upper's e&p on Line 3, or Line 4, or both (in which case you'd be double counting and need to negative it somewhere), and in which column. Very confusing! Any ideas?
Can you please make video on form 8992? Thank you
Yes! We will add that to our tutorial list. Stay tuned!
@@JasonDKnott have you added 8992 video?
Also can you please make a video on tested income calculation with an example?