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Foreign entity returns

Foreign Entity Computes Process in Income Tax

The system uses international computes for foreign entities to compute earnings and profits, Look Through Transactions, Subpart F and investment in U.S. property inclusions, and compute deemed paid credits on distribution amounts. You can select these international computes for foreign entities at the separate company level or from the Top Consolidation binder.

Binder Properties - Members Tab

The
Members
 tab on the
Binder Properties
 screen only appears in a consolidation, top consolidation or divisional consolidation binder.
You can make selections based on the type of entity:
  • Top Consolidation
    - Select each Subsidiary, Divisional Consolidation, and Parent that you want to be a member.
  • Divisional Consolidation
    - Select each division that you want to be a member. Only divisions can be members of Divisional Consolidations.
  • Prior to tax year 2009, only divisions could be members of Divisional Consolidations. In 2009 or later foreign divisions, parents, subsidiaries, and other divisional consolidations can be members of a foreign divisional consolidation.

Selecting Members of a Top Consolidation (Top Con)

  1. Select a top consolidation binder.
  2. Select the
    Properties
    icon.
  3. Select the
    Members
    tab.
  4. Click
    Add
     to add the Eliminations, Parent and FTC domestic binders to this screen.
  5. After adding the domestic binders, click the
    International Members
     tab to add foreign binders.
  1. Click
    Add
    International Members
    to select the foreign binders.
  2. Select a
    Workarea
    .
  3. Select the
    entity name, type, binder
    and
    workarea
    from the lists to select members.
  4. Click
    Save
    .
  5. Enter the
    Ownership Percentage
    .
  6. The international ownership percentage entered in a tax year 2015 (or later) Top Consolidation binder’s InternationalMembers screen and the effective ownership calculated by the system allows up to six decimal places (for example, 12.345678%). For tax years 2014 and earlier, ownership percentages are limited to two decimal places.
  7. Click
    Save
    .

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
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