Source: http://www.bna.com/Foreign-Tax-Credit-p7724/
Timestamp: 2016-10-21 21:55:37
Document Index: 796786166

Matched Legal Cases: ['§904', '§904', '§ 904', '§ 367', '§ 954', '§ 988', '§ 1058', '§ 954', '§ 907', '§ 1293', '§ 904', '§ 901', '§ 902', '§ 904', '§ 951', '§ 904']

The Foreign Tax Credit Limitation Under Section 904 (Portfolio 904) | Bloomberg BNA
Tax Management Portfolio, The Foreign Tax Credit Limitation Under Section 904, discusses one part of the U.S. foreign tax credit mechanism—the foreign tax credit limitation under §904. The basic purpose of the limitation is to ensure that the United States does not allow foreign taxes to be used as a credit against U.S. tax on any U.S.-source income.
The Portfolio discusses in general terms the computation
of the taxpayer's foreign tax credit limitation. This computation involves: (1) determining the taxpayer's gross income;
(2) separating the taxpayer's gross income into U.S.-source and foreign-source income; (3) separating the taxpayer's foreign-source gross income into foreign tax credit limitation categories (e.g., passive category income or general category income); (4) determining the
expenses allowed to be deducted in determining the taxpayer's total U.S. taxable income;
(5) allocating and apportioning the allowable deductions to the taxpayer's U.S.-source gross income and foreign-source income; (6) deducting the allocated and apportioned deductions; (7) determining final total taxable income by deducting net operating loss carryovers; (8) offsetting separate limitation gains with separate limitation losses; and (9)
determining the taxpayer's foreign tax credit limitation for each separate limitation category by multiplying the taxpayer's total U.S. tax by the ratio that the final separate limitation income determined for each category bears to the total taxable income.
In addition, this Portfolio addresses the impact of capital gains and losses on the computation of the foreign tax credit limitation and the special sourcing rules contained in §904(h).
Also discussed are the special rules established to prevent taxpayers from avoiding the foreign tax credit limitation rules through deconsolidation techniques.
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The Foreign Tax Credit Limitation Under Section 904 was authored by the following experts.
4. Revision of § 904(c) Carryover Periods
6. Clarification of Limitation Category for § 367(d) Transfers
f. Section 904(d) Exception for Export Financing Interest
d. Section 904(d) Active Rents and Royalties Exception
b. Commodities Transactions Covered by § 954(c)(1)(C)
b. Section 988 Transactions
c. Exceptions to § 988
g. Income from the Transfer of Debt Securities Subject to § 1058
(2) Section 905(c) Adjustments
(2) Effect of § 954(b)(4)
D. Coordination with § 907
6. QEF Inclusions Under § 1293
F. Coordination with § 904(h)
A. Allocation of § 901 Taxes
B. Allocation of § 902 Taxes
B. Interaction with Section 164
F. Coordination with § 904(f)
4. Inclusions under § § 951(a) and 1293
5. Interaction with § 904(f)