Page 427 - Large Business IRS Training Guides
P. 427
FDII - Example 3 - Facts
as Example 2, except now
• Assume the same facts
DOGEI income of $200 incurs directly
we know that
of $250 in total, for a loss of $50.
allocable expenses
DEI of $300 is split evenly
• We also now know that
between foreign-derived deduction eligible income
does not qualify as FDDEI.
(FDDEI) and income that
• FDDEI
incurs $120 of allocable deductions (net $30).
that does not qualify as FDDEI incurs $115 of
• DEI
allocable deductions
(net $35).
Based on this,
let’s finish the FDII computations!
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