General Instructions

Purpose of Schedule

  • Use Part I to show adjustments to separate limitation income or (losses) in determining the numerator of the limitation fraction for each separate category.

  • Use Part II to show the year-end balances of future separate limitation income that must be recharacterized as income in other separate categories (as the result of current year or prior year separate limitation losses that were allocated to reduce income in those other separate categories).

  • Use Part III to show: (a) the balances in the corporation's overall foreign loss accounts at the beginning of the tax year, (b) any current year adjustments, and (c) the balances in the overall foreign loss accounts at the end of the tax year.

  • Use Part IV to show: (a) the balances in the corporation's overall domestic loss accounts at the beginning of the tax year, (b) any current year adjustments, and (c) the balances in the overall domestic loss accounts at the end of the tax year.

Important.    Complete Schedule J only once. Include adjustments for each applicable separate category.

Computer-Generated Schedule

A computer-generated Schedule J can be filed if it conforms to the IRS version of the schedule. Expand Schedule J to properly complete Parts I, II, III, and IV of the schedule if the corporation has more than one separate category of “other income.” Income from each sanctioned country to which section 901(j) applies and each item of income resourced under a tax treaty are treated as a separate category of “other income.


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