Schedule I (Form 1120-F) 2018
Page 2
Step 3 (cont.)
Interest Expense Paid or Accrued on Average U.S. Booked Liabilities: Regulations Section 1.882-5(d)
(a)
Set(s) of Books that Give
Rise to U.S. Booked
Liabilities (see inst.)
(b)
Partnership
Interests
(c)
Totals.
Add columns
(a) and (b)
9
Total interest paid or accrued during the tax year on line 8 amount
Column (a): Do not include amounts that give rise to directly
allocable interest under Regs. sec. 1.882-5(a)(1)(ii) or from
partnerships includible in column (b).
Column (b): Enter the portion of the total from Schedule P,
line 15c that is interest on U.S. booked liabilities.
Step 3 (cont.) Adjusted U.S. Booked Liabilities Method: Regulations Section 1.882-5(d)
If line 7c is greater than line 8, column (c), complete lines 10 through 13 below and skip lines 14a and 14b.
If line 7c is less than or equal to line 8, column (c), skip lines 10 through 13 and complete lines 14a and 14b.
10
If the corporation is a foreign bank which is making a current-year election to use the published average
30-day LIBOR (see instructions), check the box on this line, skip lines 10a through 10c, and enter the
rate on line 10d . . . . . . . . . . . . . . . . . . . . . . . . .
▶
a Total interest paid or accrued during the tax year on U.S. dollar liabilities that are not
U.S. booked liabilities included on line 8 . . . . . . . . . . . . . .
10a
b Average U.S. dollar denominated liabilities that are not U.S. booked liabilities included
on line 8 . . . . . . . . . . . . . . . . . . . . . . .
10b
c Divide line 10a by line 10b . . . . . . . . . . . . . . . . . . 10c
%
d Enter the 30-day LIBOR, if elected under Regs. sec. 1.882-5(d)(5)(ii)(B) . . . . . 10d
%
e
Enter the rate from line 10c or, if elected, the 30-day LIBOR on line 10d. See instructions if amount on line
10c is zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10e
%
11 Excess U.S.-connected liabilities. Subtract line 8, column (c), from line 7c . . . . . . . . .
▶
11
12 Excess interest. Multiply line 10e by line 11 . . . . . . . . . . . . . . . . . .
▶
12
13 Add lines 9, column (c) and 12 . . . . . . . . . . . . . . . . . . . . . . . 13
14a Scaling ratio. Divide line 7c by line 8, column (c) . . . . . . . . . . . . . . . . . 14a
%
b Multiply line 9, column (c) by line 14a. See instructions for hedging amounts . . . . . . . . . 14b
15 Interest expense allocable to ECI under the adjusted U.S. booked liabilities method. Enter the result
from line 13 or line 14b here and on line 21 . . . . . . . . . . . . . . . . . .
▶
15
Step 3 (cont.) Separate Currency Pools Method: Regulations Section 1.882-5(e)
(a)
U.S. Dollar
Denominated
(b)
Home Country
Currency. Specify:
▶
(c)
Other Currency.
Specify:
▶
(d)
Other Currency.
Specify:
▶
16a
U.S. assets. Enter the corporation’s U.S. assets, using the
methodology in Regs. sec. 1.882-5(e)(1)(i). If more columns
are needed, attach statement (see instructions) . . . .
b Check here if a less than 3% currency election was
made . . . . . . . . . . . . . .
▶
17a Enter the percentage from line 6e . . . . . . . .
% % % %
b U.S.-connected liabilities. Multiply line 16a by line 17a, or,
if a liability reduction election is made, see instructions . .
18a
Enter the total interest expense paid or accrued for the tax
year with respect to the foreign corporation’s worldwide
liabilities denominated in that foreign currency (enter in
functional currency) . . . . . . . . . . . .
b
Enter the corporation’s average worldwide liabilities
(whether interest bearing or not) denominated in that foreign
currency (enter in functional currency) . . . . . . .
c Borrowing rate: Divide line 18a by line 18b . . . . .
% % % %
19 Interest expense allocation by separate currency pool.
Multiply line 17b by line 18c . . . . . . . . . .
20 Interest expense allocable to ECI under the separate currency pools method. Total the amounts on line 19, columns
(a) through (d), and amounts from attached statement, if any, and enter the result here and on line 21 . . . . . .
Schedule I (Form 1120-F) 2018
