Instructions for IRS Form 1118 Schedule J Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances

IRS Form 1118 Schedule J Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances

This document contains official instructions for IRS Form 1118 Schedule J, Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1118 Schedule J is available for download through this link.

FAQ

Q: What is IRS Form 1118?A: IRS Form 1118 is a form used by corporations to calculate and report their foreign tax credits.

Q: What is Schedule J on IRS Form 1118?A: Schedule J on IRS Form 1118 is used to report adjustments to separate limitation income (loss) categories.

Q: What are separate limitation income (loss) categories?A: Separate limitation income (loss) categories are the different types of income (or loss) that are subject to different foreign taxcredit limitations.

Q: What are limitation fractions?A: Limitation fractions are used to determine the amount of foreign taxes that can be used as a credit against US taxes.

Q: What are year-end recharacterization balances?A: Year-end recharacterization balances are the amounts of foreign taxes that are recharacterized at the end of the tax year.

Q: What are overall foreign and domestic loss account balances?A: Overall foreign and domestic loss account balances are the net amounts of foreign and domestic losses that can be carried forward or backward for tax purposes.