GILTI Reporting: Preparation of Forms 5471, 8992, 8993, 1118; Comprehensive Examples of Common GILTI Scenarios

GILTI is calculated by subtracting net deemed tangible income (DTIR) from net CFC-tested income. DTIR is 10 percent of the entity's qualified business asset investment (QBAI). Subpart F income, income qualifying for the high-tax exception for subpart F income, and U.S. ECI (effectively connected income) are excluded from GILTI.

Form 5471, Schedule I-1, captures CFC income inclusions by U.S. shareholders under Section 951A. It begins with the inclusion of gross CFC income, followed by the list of the applicable exclusions. Once tested income, tested loss, QBAI, and other required data are determined, these amounts are transferred to the now separate Schedule A of Form 8992, U.S. Shareholder Calculation of GILTI. CFC-tested income from Schedule A is transferred to the face of Form 8992, Part I. Additional GILTI reporting requirements include Form 1118 for foreign tax credits and Form 8993 to report the Section 250 deductions for FDII and GILTI. The GILTI taxation reporting regime is complex. Tax professionals who grasp its requirements often struggle to meet its intricate reporting requirements.

Listen as our panel of international taxation experts demonstrates how to calculate and report GILTI and offers suggestions to ease the process and mitigate taxes paid.

1. GILTI: an introduction
2. Calculations
3. Comprehensive examples
   1. Form 5471
   2. Form 8992
   3. Form 8993
   4. Form 1118
   5. Other forms and reporting requirements
4. Best practices

The panel will review these and other critical issues:

• Following the reporting of GILTI through the numerous required forms
• How to calculate tested income, QBAI, and DTIR
• Completing Form 5471 Schedule I-1 and Schedule A of Form 8992
• Calculating and reporting the Section 250 deductions for GILTI

Learning Objectives

After completing this course, you will be able to:

• Understand GILTI
• Determine how to calculate tested income, QBAI, and DTIR
• Recognize deductions provided under IRC 250 for GILTI
• Ascertain GILTI on CFCs
• Verify that Forms 8992, 8993, and 1118 are correctly completed; categorize foreign income into required categories on Form 5471, Schedule J

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).