Form 8926 PDF Details

In the intricate landscape of corporate taxation, Form 8926 emerges as a critical tool for corporations navigating the implications of Section 163(j) of the Internal Revenue Code. Issued by the Department of the Treasury’s Internal Revenue Service, this form, revised in December 2017, serves the specific purpose of detailing the disqualified corporate interest expense disallowed under the aforementioned section along with related information. Its primary function is to be attached to the corporation's income tax return, offering a structured means for corporations to calculate and report adjustments to their interest expense deductions. The form requires comprehensive input, including total money and the adjusted basis of all assets at tax year-end, the totality of the corporation’s indebtedness, and intricate details regarding interest paid or accrued within the tax year. Furthermore, it delves into aspects concerning disqualified interest paid to related persons or on indebtedness subject to certain guarantees, adjustments to taxable income for the calculation of adjusted taxable income, and the intricate calculation of the corporation's allowable net interest expense. Pertinently, Form 8926 also facilitates tracking any interest deduction disallowed under Section 163(j) that is carried forward to future tax years, highlighting its significance in multi-year tax planning and compliance for corporations. Through obliging corporations to report in such detail, the form plays an essential role in enforcing the limitations set forth by Section 163(j) and ensuring that corporations adhere to regulatory requirements in the context of their interest deductions.

QuestionAnswer
Form NameForm 8926
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namescorporate disallowed 163 pdf, 8926 interest form, 8926 corporate disallowed form, irs form 163 pdf

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Form 8926

(Rev. December 2017)

Department of the Treasury

Internal Revenue Service

Disqualified Corporate Interest Expense Disallowed

Under Section 163(j) and Related Information

Attach to the corporation's income tax return.

Go to WWW.IRS.GOV/FORM8926 for instructions and the latest information.

OMB No. 1545-0123

Name of corporation (name of parent, if an affiliated group)

Employer identification number

Check here if the form is being filed on behalf of an affiliated group described in section 1504(a) . . . . . . . . . . .

1a Enter the total amount of the corporation’s money at the end of the

 

tax year

1a

bEnter the adjusted basis of all the corporation’s other assets at the

end of the tax year

1b

c Add lines 1a and 1b

1c

dEnter the total amount of the corporation’s indebtedness at the end

 

of the tax year. See instructions

1d

e

Subtract line 1d from line 1c. If zero or less, enter $1

f

Debt to equity ratio. Divide line 1d by line 1e. See instructions

1e

1f

.

gIs the corporation including as part of its assets on line 1b stock described in Regulations section

1.7874-1(d) that it holds in a corporation to whom it paid disqualified interest?

Yes

No

If “Yes,” enter the adjusted basis of that stock

.

. . .

.

.

. $

 

 

 

 

h Is the corporation including as part of its assets on line 1b stock it holds in foreign subsidiaries? . .

Yes

No

If “Yes,” enter the adjusted basis of that stock

.

. . .

.

.

. $

 

 

 

 

iIs the corporation including as part of its assets on line 1b tangible assets it directly holds that are

 

located in a foreign country? See instructions

.

Yes

No

 

If “Yes,” enter the adjusted basis of those tangible assets .

.

.

. $

 

 

 

 

 

j

Is the corporation including as part of its assets on line 1b any intangible assets?

.

Yes

No

 

If “Yes,” enter the adjusted basis of those intangible assets

.

.

. $

 

 

 

 

 

2a

Enter the interest paid or accrued by the corporation for the tax year (including any disqualified

 

 

 

 

interest disallowed under section 163(j) in a prior year and carried forward to the current year) .

2a

 

 

b

Enter any interest includible in the gross income of the corporation for the tax year . . . .

2b

 

 

c

Net interest expense. Subtract line 2b from line 2a. If zero or less, enter -0-

2c

 

 

3a

Enter the corporation’s taxable income (loss) before the application of section 163(j) . . . .

3a

 

 

b

Enter the corporation’s allowable net interest expense. See instructions

3b

 

 

c

Enter any net operating loss deduction taken by the corporation under section 172 . . . .

3c

 

 

d

Enter any deduction taken under section 199

3d

 

 

e

Enter any deduction taken for depreciation, amortization, or depletion

3e

 

 

fEnter any additional adjustments the corporation has made to its taxable income (loss) (other than those listed on lines 3b through 3e above) in arriving at its adjusted taxable income. See

instructions. Attach schedule

3f

g Adjusted taxable income. Combine lines 3a through 3f. If zero or less, enter -0-

3g

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37739W

Form 8926 (Rev. 12-2017)

Form 8926 (Rev. 12-2017)

Page 2

4a Multiply line 3g by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . .

bEnter any unused excess limitation carried forward to the current tax year from the prior 3 tax

 

years. See instructions

c

Add lines 4a and 4b

d

Excess interest expense. Subtract line 4c from line 2c. If zero or less, enter -0-

5a

Enter any disqualified interest actually paid or accrued in the current year by the corporation to a

 

related person

bEnter any disqualified interest actually paid or accrued in the current year by the corporation on

indebtedness subject to a disqualified guarantee . . . . . . . . . . . . . . . .

cEnter any interest actually paid or accrued in the current year by a taxable REIT subsidiary (as

defined in section 856(l)) of a real estate investment trust to such trust . . . . . . . . .

d Add lines 5a, 5b, and 5c . . . . . . . . . . . . . . . . . . . . . . . .

eEnter any disqualified interest disallowed under section 163(j) for prior tax years that is treated

as paid or accrued in the current tax year . . . . . . . . . . . . . . . . . .

f Total disqualified interest for the tax year. Add lines 5d and 5e . . . . . . . . . .

4a

4b

4c

4d

5a

5b

5c

5d

5e

5f

6 Information about related persons receiving disqualified interest:

 

Name, Address, and ZIP code

Country of Incorporation

 

or Organization

 

 

 

 

 

a

 

 

 

 

b

 

 

 

 

c

 

 

 

 

d

 

 

 

 

e

 

 

 

 

7Enter the amount of interest deduction disallowed under section 163(j) and carried forward to the

 

next tax year. See instructions

. . . . . . . . .

 

7

 

8a

Unused excess limitation carryforward from the prior 2 tax years

8a

 

 

 

 

 

b Excess limitation for the current tax year. Subtract line 2c from

 

 

 

 

 

 

 

line 4a. If zero or less, enter -0-

 

8b

 

 

 

 

 

Excess limitation carryforward to the next tax year. Add lines 8a and 8b. See instructions .

 

 

c

8c

 

Form 8926 (Rev. 12-2017)

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As a way to fill out this document, make sure that you enter the necessary details in each and every blank field:

1. It's important to fill out the irs form 8926 properly, so pay close attention when filling out the sections containing these fields:

Part # 1 in filling in irs disqualified interest

2. Just after completing the last part, go on to the next part and enter the necessary particulars in all these blanks - Is the corporation including as, Yes, If Yes enter the adjusted basis of, Is the corporation including as, Yes, a Enter the interest paid or, interest disallowed under section, b Enter any interest includible in, c Net interest expense Subtract, a Enter the corporations taxable, b Enter the corporations allowable, c Enter any net operating loss, d Enter any deduction taken under, e Enter any deduction taken for, and Enter any additional adjustments.

Step no. 2 for filling out irs disqualified interest

3. In this particular stage, examine a Multiply line g by, b Enter any unused excess, years See instructions, c Add lines a and b, d Excess interest expense Subtract, a Enter any disqualified interest, related person, b Enter any disqualified interest, indebtedness subject to a, c Enter any interest actually paid, defined in section l of a real, d Add lines a b and c, e Enter any disqualified interest, and as paid or accrued in the current. These will need to be filled in with highest accuracy.

a Enter any disqualified interest, years See instructions, and d Add lines a b and c of irs disqualified interest

4. The form's fourth paragraph arrives with these particular form blanks to fill out: f Total disqualified interest for, Information about related persons, Name Address and ZIP code, Country of Incorporation, or Organization, Enter the amount of interest, and a Unused excess limitation.

Filling in part 4 in irs disqualified interest

Be really mindful when filling out Enter the amount of interest and a Unused excess limitation, since this is the section where many people make mistakes.

5. The final point to submit this form is crucial. You must fill in the necessary form fields, particularly b Excess limitation for the, line a If zero or less enter, c Excess limitation carryforward, and Form Rev, before finalizing. Failing to do it can give you an unfinished and probably nonvalid form!

Step no. 5 of submitting irs disqualified interest

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