Get Form 1118 (schedule J) (rev. January 1999 )

This guide provides clear, step-by-step instructions on how to accurately complete Form 1118 (Schedule J) online. Understanding each component of the form will help users effectively report adjustments to separate limitation income categories.

Follow the steps to fill out Form 1118 (Schedule J) online.

1. Press the 'Get Form' button to access the document and open it in your online editor.
2. Enter the employer identification number and the name of the corporation in the designated fields on the form.
3. In Part I, input the respective income or losses for each applicable category in the columns, making sure to sum all separate limitation income accurately.
4. Complete the allocation grid in line 2 to show how current year separate limitation losses are distributed among various income categories.
5. For line 4, if applicable, enter the overall foreign losses for the tax year that have reduced U.S. source income.
6. Recapture any foreign losses from prior years on line 5 by treating current year income of the same category as U.S. source income, if applicable.
7. If a current year income has been generated from a category previously allocated with a separate limitation loss, ensure the income is recharacterized correctly as shown in line 7.
8. Proceed to Part II and enter your year-end balances of future separate limitation income based on prior year allocations.
9. In Part III, document the overall foreign loss account balances by summarizing beginning balances, current additions, reductions, and ending balances accurately.
10. Review the completed form to ensure accuracy, then you can save changes, download, print, or share the form as needed.

Complete your documents online for effective digital document management.