Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Foreign entity returns

Interest Apportionment Overview

The Interest Apportionment Information screen is used to collect the information required to build the asset base for the apportionment of interest expense for the foreign entity. The screen is divided into two tabs, Operating Assets - Taxable & Non-Taxable and Basis in Subsidiary. During E&P, Look Through and Subpart F calculations, amounts allocated and apportioned in the Asset Sourcing Workpaper are transferred to the End of Year Taxable (From International Compute) column. The module responsible for the most recently transferred amounts is noted in the column heading after Last Compute.
During a TAS Consolidation, the system aggregates information from member binders for divisional consolidations that source at the division level. If sourcing is done at the divisional consolidation level, enter amounts directly in the divisional consolidation’s workpaper. The sourcing indicator is located on the Binder Properties screen on the
International
tab.
To access these screens, on the TAS navigation tree, select
Foreign Tax Credit > Interest Apportionment Information
.
The following table describes the tabs:
Tab
Use
Operating Assets - Taxable - Non-Taxable
This tab is used to enter asset information related to the assets of the entity. The Source Code column is used to identify the type of income generated. The asset values are entered in the Beginning of the Year and End of the Year columns and the Average Asset Override, if desired.
Enter tax basis or Fair Market Value (FMV) of the assets (whichever is appropriate.) The system uses the average of the beginning and ending operating asset values for each source code in constructing the asset apportionment base for interest expense.
Completing this tab is optional. Information entered in this tab represents assets that generated non-taxable income for the source code selected. Amounts entered on this tab will not be included in the asset apportionment base for interest expense.
Basis in Subsidiaries
This tab is used to enter parent's basis in stock (tax basis or FMV) and the earnings and profits of the subsidiary. The earnings and profits should only be entered for an entity when the tax basis value is being reported. Amounts entered on this tab will not be included in the asset apportionment base for interest expense in a Foreign Entity binder.

This article applies to:

  • Product: ONESOURCE Income Tax
  • Subject: Apportionment
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close