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Screen 8858 - Foreign Disregarded Entities (1040)
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Overview
Use this screen to enter information for the person filing Form 8858 and the foreign disregarded entity information.
General Information
Enter information in this section for the person filing Form 8858.
Unit
The next available number is automatically entered. Override this number if necessary, but don't leave the field blank. This information is used to gather and coordinate information for the business unit activity.
T, S
Enter the taxpayer or spouse code to indicate who the form is being filed for. If this field is left blank it will default to the taxpayer code.
Foreign disregarded entity name
Enter the name of the foreign disregarded entity. The foreign disregarded entity name is used as the unit description in the folders block.
Identifying number
Enter the identifying number of the person filing Form 8858. If this field is blank, the application defaults to the Social Security number for the person.
Name and address
Enter the name and address of the person filing Form 8858. If these fields are blank, the default is the name and address entered on the 1040 screen.
Category 4 or 5 filer of Form 5471 or category 1 or 2 filer of Form 8865
If the person filing Form 8858 is a category 4 filer of Form 5471 or category 1 filer of Form 8865, enter
1
in this field or select it from the fieldview. The application will complete the entire Form 8858 and Schedule M (Form 8858).If the person filing Form 8858 is a category 5 filer of Form 5471 or category 2 filer of Form 8865, enter
2
in this field or select it from the fieldview. The application will only complete the identifying information on Form 8858, Page 1, and Schedules G and H, Page 2.Inactive activity for
2025
Enter
X
to indicate that this Form 8858 activity wasn't active for the current tax year. Any data in the activity's input screens and asset detail is ignored. This activity will proforma to next year. When the activity resumes, unmark the field.Delete on next year's proforma
Enter
X
in this field if you want to delete this unit of the 8858 screen on next year’s proforma.Foreign Disregarded Entity Information
Enter information in this section to complete the information for the foreign disregarded entity.
Annual accounting period
Enter the tax year beginning and ending dates of the foreign disregarded entity. If these fields are blank, the default is to the calendar year beginning and ending dates.
US identifying number, if any
Enter the employer identification number of the foreign disregarded entity.
Reference ID number
Enter the reference ID number of the foreign disregarded entity. A reference ID number is required when no EIN is entered.
Country under whose laws organized
Enter the 2-letter code for the foreign country under whose laws the foreign disregarded entity is organized. Enter the foreign country code in the field or select it from the fieldview. The application updates the name of the foreign country based on the 2-letter code selected and transfers the name of the foreign country to Form 8858, Page 1, Country under whose laws organized.
Country in which principal business activity is conducted
Enter the 2-letter code for the foreign country in which the foreign disregarded entity conducts its principal business activity. Enter the foreign country code in the field or select it from the fieldview. The application updates the name of the foreign country based on the 2-letter code selected and transfers the name of the foreign country to Form 8858, Page 1, Country in which principal business activity is conducted.
Functional currency
Enter the name of the functional currency of the foreign disregarded entity.
Average exchange rate, USD per 1 Unit FC
Enter the average exchange rate as the number of U.S. dollars that equal 1 unit of foreign currency.
note
For more information on the exchange rates used when translating foreign currency amounts to U.S. dollars, see What exchange rate is being used on Form 5471.
Current year-end spot rate, USD per 1 Unit FC
Enter the current year-end exchange rate as the number of U.S. dollars that equal 1 unit of foreign currency.
note
For more information on the exchange rates used when translating foreign currency amounts to U.S. dollars, see What exchange rate is being used on Form 5471.
Prior year-end spot rate, USD per 1 Unit FC
Enter the prior year-end exchange rate as the number of U.S. dollars that equal 1 unit of foreign currency.
note
For more information on the exchange rates used when translating foreign currency amounts to U.S. dollars, see What exchange rate is being used on Form 5471.
Average exchange rate, FC Units per 1 USD
The application automatically converts the exchange rate entered in the Average exchange rate, USD per 1 Unit FC field into the number of foreign currency units that equals 1 U.S. dollar. If you disagree with the exchange rate displayed in this field, enter the desired exchange rate. This exchange rate is used when translating foreign currency amounts to U.S. dollars. This exchange rate also displays on Form 8858, Schedule H, and Schedule M.
Current year-end spot rate, FC Units per 1 USD
The application automatically converts the exchange rate entered in the
Current year-end spot rate, USD per 1 Unit FC
field into the number of foreign currency units that equals 1 U.S. dollar. If you disagree with the exchange rate displayed in this field, enter the desired exchange rate. This exchange rate is used when translating foreign currency amounts to U.S. dollars.Prior year-end spot rate, FC Units per 1 USD
The application automatically converts the exchange rate entered in the
Prior year-end spot rate, USD per 1 Unit FC
field into the number of foreign currency units that equals 1 U.S. dollar. If you disagree with the exchange rate displayed in this field, enter the desired exchange rate. This exchange rate is used when translating foreign currency amounts to U.S. dollars.Use DASTM method of accounting
Enter
X
if the foreign corporation uses the U.S. dollar approximate separate transactions method (DASTM) under Regulations 1.985-3. If this field is marked, the application transfers the U.S. dollar current year net income or (loss) from line 8 of Schedule C to line 1 of Schedule H.Elect summary procedure for dormant corporation
Enter
X
if the person filing the return elects the summary filing procedure for filing Form 8858 for a dormant foreign disregarded entity. Form 8858, Page 1 for each dormant FDE prints, and prints "Filed Pursuant to Announcement 2004-4 for Dormant FDE" at the top of the form.