Where do I report dividends paid on Form 5471 Schedule C or Schedule F

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Subject Author Date Where do I report dividends paid on Form 5471 Schedule C or Schedule F A Wieser 03-12-2008  Re: Where do I report dividends paid on Form 5471 ... Alan 03-12-2008  Re: Where do I report dividends paid on Form 5471 ... A Wieser 03-12-2008  Re: Where do I report dividends paid on Form 5471 ... jmail7 03-12-2008  Re: Where do I report dividends paid on Form 5471 ... A Wieser 03-12-2008  Re: Where do I report dividends paid on Form 5471 ... jmail7 03-12-2008  Form 8261 and PFIC. What are section 1 or 11 tax ... A Wieser 03-13-2008  Re: Form 8261 and PFIC. What are section 1 or 11 t... jmail7 03-13-2008  Re: Where do I report dividends paid on Form 5471 ... Alan 03-12-2008
Posted by jmail7 on March 12, 2008, 9:56 pm Please log in for more thread options > True, that's there on Schedule M, line 21, but it's only true for category 4 > filers. Note that if the foreign corporation is not controlled by U.S. persons and you are not a category 4 filer, then you need to assess whether the foreign corporation is a passive foreign investment company (PFIC). If it is a PFIC, then you may want to make a qualified electing fund (QEF) election or a mark-to-market election. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by A Wieser on March 13, 2008, 10:32 am Please log in for more thread options >> True, that's there on Schedule M, line 21, but it's only true for >> category 4 >> filers. > > Note that if the foreign corporation is not controlled by U.S. persons > and you are not a category 4 filer, then you need to assess whether > the foreign corporation is a passive foreign investment company > (PFIC). If it is a PFIC, then you may want to make a qualified > electing fund (QEF) election or a mark-to-market election. > Because of the cash holding to keep the company solvent, it looks like I'm caught by the PFIC rules, and therefore have to fill out form 8261. However dividends haven't been over the excess level, except by a few hundred dollars due to foreign exchange rate movements. As a result, it looks like it's best not to go with the QEF election. So, when I go back and allocate the excess on a gain, it says that I should use the highest rate of tax under section 1 or section 11 for a given year. Where would I find the tax rates applicable for a given year? Are they in the 1040 instructions for each year? Tony -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by jmail7 on March 13, 2008, 11:21 pm Please log in for more thread options > As a result, it looks like it's best not to go with the QEF election. If you don't make the QEF election you may be effectively converting capital gain into ordinary income. Other adverse consequences may also apply. > So, when I go back and allocate the excess on a gain, it says that I should > use the highest rate of tax under section 1 or section 11 for a given year. > > Where would I find the tax rates applicable for a given year?  Are they in > the 1040 instructions for each year? Yes, the section 1 rates are in the tax tables. For individuals the section 1 rates apply. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on March 12, 2008, 8:19 pm Please log in for more thread options A Wieser wrote: >>> The only thing I'm not sure about is where to report the dividends >>> paid by the company on 5471 schedule C. >>> >>> Alternatively, are they just not listed at all, and assumed to have >>> been paid as the difference between beginning retained earnings and >>> final retained earnings? >>> >>> Tony >>> >> Typically, it's buried in the difference between Line 20a and 20b on >> Schedule F. > > That was what I assumed. Thanks for the corroboration. > > Tony > By the way... the word "Typically" in my response was meant to imply that GAAP says it is reflected in the retained earnings delta. I have no idea how a foreign corporation operating out of a foreign country with accounting procedures not consistent with US GAAP accounted for it. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Schedule C or Form 4137 + Schedule U ? 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