Page 220 - Large Business IRS Training Guides

Adjusted Taxable Income (ATI) – Global Intangible Low-Taxed

Income (GILTI), Subpart F and Foreign-Derived Intangible Income

(FDII)

• GILTI and related IRC § 250 deduction and Subpart F

Income should be excluded from US Shareholders’ ATI

computed on Form 8990, Line 20 (reductions).

• Under the proposed regulations, if a CFC group election

was made and the top tier CFC has excess taxable income

(ETI), the US shareholder includes its ownership portion of

the top-tier’s CFC ETI in its ATI calculation. See Prop.

Treas. Reg. § 1.163-7(d)(1) and (2). (Form 8990, Line 15)

• The preliminary FDII deduction should be taken into

account in Line 6 of Form 8990. See FDII proposed

regulations for the ordering rules regarding FDII deduction

and IRC §163(j).

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