Page 631 - Large Business IRS Training Guides

QBAI Example 2

FACTS:

USP • QBAI:
• CFC1: 200x

• CFC2: 50x

60% 100% 100% • CFC3: -0- (because of tested loss)

CFC1 CFC2 CFC3 • Specified interest expense: -0­
ANALYSIS:

CFC1 CFC2 CFC3 • USP’s net CFC tested income equals 60x
• [(60% x
100x) + (100% x 40x)] – (100%
TI / (TL) 100x 40x (40x)
x 40x)

QBAI 200x 50x • USP’s net DTIR equals 17x

• 10% x [(60% x 200x) + (100% x 50x)]
• USP’s GILTI inclusion is 43x (60x - $17x)

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