Page 621 - Large Business IRS Training Guides
P. 621
Tested Income Example (cont’d)
FACTS:
has gross income of 225x, of which
USP • CFC
there is FBC sales
income of 100x,
of $75x, and other income of 50x.
FOGEI
• CFC has deductions
properly allocable to
gross tested income of 80x.
ANALYSIS:
because its
• CFC has a tested loss
allocable deductions are greater
CFC properly
than its gross tested income.
• CFC’s
tested loss is 30x (the properly
80x exceed gross
allocable deductions of
FBCSI: 100x tested income of 50x
by 30x).
FOGEI: 75x
Other income: 50x
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