Qualified Deficits

Add user codes

Go to
Charts
International Sourcing
Source Code Definition
Year
Source Code Definition
tab.
note
The year defaults to the most recent year.
To review the codes, select
1 – Qualified Deficit
in the
Qualified Activity
column.
To create a code, select
Add
.
Enter the
Source Code
and
Description
.
Select the
FTC Type
,
U.S. / Foreign Source
, and
FDII Type
.
Select the
Subpart F Type
(not
0 – Not Applicable
).
In the
Qualified Activity
column, select
1 – Qualified Deficit
.
Select
Save
.
Go to
Charts
International
Sourcing Charts
Year
.
Select the chart.
In
Available Source Codes
, select the code.
Select
Map
.
Select
Save
.

Enter Qualified Deficit information

On the TAS navigation tree, select
Foreign Entity
Other Adjustments
Qualified Deficit
.
Select a
Source of Deficit
source code from the dropdown.
Enter the deficit amount in the
Amount
column. Enter amounts as positive numbers.
Select
Save
.

Utilize Qualified Deficits

Only current year amounts are offset by the
Qualified Deficit
.
Utilization calculates in
International Reports
Subpart F Reports
Subpart F Deemed Distribution by Source Code Report
Deficits – 952(c)(1)(B)/(C)
.
Sec954(b)(3) Adjustments
,
Section 163(j) Adjustment
,
Sec954(b)(4) Adjustments
, and
Net Base Company Income Basket/Category Netting
adjust income before the Qualified Deficit.

Rollover of Qualified Deficits