Page 422 - Large Business IRS Training Guides

FDII - Example 1 - Step 4

fourth step is to determine USP’s foreign-derived intangible
The

income and the deduction for foreign-derived intangible
income:
FDDEI =
The Portion of DEI from Foreign-Derived Sales and Services
FDR =
(FDDEI / DEI)
FDII =
(DII x FDR)
250 deduction with respect
to FDII = (37.5% x FDII)
• Step 4 – Determine FDII
and 250 deduction with respect to FDII

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