Page 754 - Large Business IRS Training Guides

Example 6 (cont’d)
1

Deemed paid taxes

E&P USSH USSH ownership DFI E&P Deficit Taxes Cash Position
-
- 2 Nov & 31 Dec - 2 Nov 31 -Dec
DFIC1 100 USS1 100% 100 30 1,000
DFIC2 1,000 USS1 100% 1,000 400 ­
USS1 1,100 ­ 1,000
DFIC3 100 USS2 100% 100 1,000
EPDFC1 (100) USS2 (100) 1,000
USS2 100 (100) 2,000

1,200 (100) Consolidated AFCP 3,000

Post-1986 undistributed earnings
Section 965(a) inclusion
US SH's
USSH pro rata Deficit Allocation Aggregate Section 965(a)
DFI 2017 2018
share Ratio Foreign E&P Inclusion Amount
Deficit
DFIC1 100 100% 100 0.0833 8 92 92
DFIC2 1,000 100% 1,000 0.8333 83 917 917
DFIC3 100 100% 100 0.0833 8 92 92
1,200 100 1,100 1,100 -
(100)
Assumptions:

• Deemed paid taxes:
includes opening balance in post-1986 tax pools and
foreign taxes
paid and deemed paid for tax year indicated
of income: general
• Separate category 76