Page 798 - Large Business IRS Training Guides

Form 1040 Example – Section 965(h)

Election

• Wages = $400,000 • Total tax = $280,322

• Interest income = $80,000 • Net tax liability under

• Section 965(a) section 965 = $160,604
inclusion =

$900,000 • Net tax liability outside of
• Section 965(c) section 965 = $119,718
deduction =
$501,429

• In 2017, reported on line 21: net

section 965 amount = $398,571

• Itemized deductions
= $40,057

The individual
makes the election to pay tax in eight installments.

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