Where do I report dividends paid on Form 5471 Schedule C or Schedule F
A Wieser
I think I've now figured almost everything out. The only thing I'm not sure
about is where to report the dividends paid by the company on 5471 schedule
C.
If they were to be recorded, they'd have to come out on line 19, but it
doesn't seem that they're an extraordinary item. Are they a prior period
adjustment?
Alternatively, are they just not listed at all, and assumed to have been
paid as the difference between beginning retained earnings and final
retained earnings?
Alternatively, if they don't go on schedule C, do they go somewhere on
Schedule F?
Tony
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Alan
> Thanks Alan for answering my 5471 questions so far. It's been a great
> help.
>
> I think I've now figured almost everything out. The only thing I'm not
> sure about is where to report the dividends paid by the company on 5471
> schedule C.
>
> If they were to be recorded, they'd have to come out on line 19, but it
> doesn't seem that they're an extraordinary item. Are they a prior
> period adjustment?
>
> Alternatively, are they just not listed at all, and assumed to have been
> paid as the difference between beginning retained earnings and final
> retained earnings?
>
> Alternatively, if they don't go on schedule C, do they go somewhere on
> Schedule F?
>
> Tony
>
on Schedule F.
A Wieser
>> by the company on 5471 schedule C.
>>
>> paid as the difference between beginning retained earnings and final
>> retained earnings?
>>
>>
> Typically, it's buried in the difference between Line 20a and 20b on
> Schedule F.
That was what I assumed. Thanks for the corroboration.
Tony
jma...@andrewmitchel.com
> >> The only thing I'm not sure about is where to report the dividends paid
> >> by the company on 5471 schedule C.
>
> >> Alternatively, are they just not listed at all, and assumed to have been
> >> paid as the difference between beginning retained earnings and final
> >> retained earnings?
The dividends paid would also be shown on Schedule M.
A Wieser
<jma...@andrewmitchel.com> wrote in message
news:fee157cc-707c-4a1b...@13g2000hsb.googlegroups.com...
> On Mar 12, 12:53 pm, "A Wieser" <m...@wieser.plus.com> wrote:
>> >> The only thing I'm not sure about is where to report the dividends
>> >> paid
>> >> by the company on 5471 schedule C.
>>
>> >> Alternatively, are they just not listed at all, and assumed to have
>> >> been
>> >> paid as the difference between beginning retained earnings and final
>> >> retained earnings?
>
> The dividends paid would also be shown on Schedule M.
True, that's there on Schedule M, line 21, but it's only true for category 4
filers.
Tony
Alan
>>> The only thing I'm not sure about is where to report the dividends
>>> paid by the company on 5471 schedule C.
>>>
>>> Alternatively, are they just not listed at all, and assumed to have
>>> been paid as the difference between beginning retained earnings and
>>> final retained earnings?
>>>
>>> Tony
>>>
>> Typically, it's buried in the difference between Line 20a and 20b on
>> Schedule F.
>
> That was what I assumed. Thanks for the corroboration.
>
> Tony
>
imply that GAAP says it is reflected in the retained earnings
delta. I have no idea how a foreign corporation operating out of
a foreign country with accounting procedures not consistent with
US GAAP accounted for it.
jma...@andrewmitchel.com
> filers.
Note that if the foreign corporation is not controlled by U.S. persons
and you are not a category 4 filer, then you need to assess whether
the foreign corporation is a passive foreign investment company
(PFIC). If it is a PFIC, then you may want to make a qualified
electing fund (QEF) election or a mark-to-market election.
A Wieser
<jma...@andrewmitchel.com> wrote in message
news:c6f2bcab-30eb-4942...@y77g2000hsy.googlegroups.com...
>> True, that's there on Schedule M, line 21, but it's only true for
>> category 4
>> filers.
>
> Note that if the foreign corporation is not controlled by U.S. persons
> and you are not a category 4 filer, then you need to assess whether
> the foreign corporation is a passive foreign investment company
> (PFIC). If it is a PFIC, then you may want to make a qualified
> electing fund (QEF) election or a mark-to-market election.
>
Because of the cash holding to keep the company solvent, it looks like I'm
caught by the PFIC rules, and therefore have to fill out form 8261. However
dividends haven't been over the excess level, except by a few hundred
dollars due to foreign exchange rate movements.
As a result, it looks like it's best not to go with the QEF election.
So, when I go back and allocate the excess on a gain, it says that I should
use the highest rate of tax under section 1 or section 11 for a given year.
Where would I find the tax rates applicable for a given year? Are they in
the 1040 instructions for each year?
Tony
jma...@andrewmitchel.com
If you don't make the QEF election you may be effectively converting
capital gain into ordinary income. Other adverse consequences may
also apply.
> So, when I go back and allocate the excess on a gain, it says that I should
> use the highest rate of tax under section 1 or section 11 for a given year.
>
> Where would I find the tax rates applicable for a given year? Are they in
> the 1040 instructions for each year?
Yes, the section 1 rates are in the tax tables. For individuals the
section 1 rates apply.