Free 2008 Form 1120-F (Schedule H) - Federal

SCHEDULE H (Form 1120-F)
Department of the Treasury Internal Revenue Service

Deductions Allocated To Effectively Connected Income Under Regulations Section 1.861-8
Attach to Form 1120-F. See separate instructions.

OMB No. 1545-0126

2008
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Name of corporation

Employer identification number

Part I

Home Office Deductible Expenses Definitely Related Solely to ECI or Non-ECI
Note. Enter all amounts on lines 1 through 13 in only U.S. dollars or in only functional currency. If U.S. dollars, check box Otherwise, specify currency

1 2 3 4 5 6 7 8 9 10 11 12

1 Total expenses on the books of the home office 2 Adjustments for U.S. tax principles (attach schedule - see instructions) Total deductible expenses on the books of the home office. Combine lines 1 and 2 4 Interest expense included in line 3 5 Bad debt expense included in line 3 Total of interest expense and bad debt expense. Add lines 4 and 5 Remaining deductible expenses to be allocated and apportioned between ECI and non-ECI. Subtract line 6 from line 3 8 Deductible expenses definitely related solely to non-ECI from subsidiaries Deductible expenses definitely related solely to other non-ECI booked in the 9 home country Deductible expenses definitely related solely to other non-ECI booked in 10 other countries (including the United States) 11 Deductible expenses definitely related solely to ECI Total deductible expenses definitely related solely to ECI or non-ECI. Add lines 8 through 11

3

6 7

12

Part II
13 14 15 16 17 18 19 20

Home Office Deductible Expenses Allocated and Apportioned to ECI
Note. Enter the amounts on lines 15 through 20 in U.S. dollars.

Remaining deductible expenses on the books of the home office not definitely related solely to ECI or non-ECI. Subtract line 12 from line 7 Average exchange rate used to convert amounts to U.S. dollars (see instructions) Enter the amount from line 13. If line 13 is stated in functional currency, divide line 13 by line 14 Remaining home office deductible expenses on line 15 allocated and apportioned under Regulations section 1.861-8 to ECI (attach computation) Enter the amount from line 11. If line 11 is stated in functional currency, divide line 11 by line 14 Total home office deductible expenses allocated and apportioned to ECI. Add lines 16 and 17 Total deductible expenses from other non-U.S. locations allocated and apportioned to ECI Total deductible expenses allocated and apportioned to ECI. Add lines 18 and 19 and enter the amount here and on Form 1120-F, Section II, line 26 Note. Enter the amounts in Part III, lines 21a, 21b, 22a, and 22b in U.S. dollars.

13 14 15 16 17 18 19 20

Part III

Allocation and Apportionment Methods and Financial Records Used to Complete Parts I and II

If one or more methods used are different than in prior year, check box If any amount on line 20 is recorded as an interbranch amount on books and records used to prepare Form 1120-F, Schedule L, include the amount on Part IV, line 35 and check this box 21 a b c 22 a b c 23 a b c 24 25 Gross income ratio: Gross ECI Worldwide gross income Divide line 21a by line 21b Gross asset ratio: Average U.S. assets from Schedule I, line 5, column (d) Worldwide assets (if applicable, from Schedule I, line 6b) Divide line 22a by line 22b Number of personnel ratio: Personnel of U.S. trade or business Worldwide personnel Divide line 23a by line 23b Did the corporation use any ratio-based methods (other than those indicated in Parts I and II? If "Yes," attach schedule (see instructions) Did the corporation use any other methods (e.g., time-spent analysis or If "Yes," attach schedule (see instructions) 21a 21b 21c 22a 22b 22c 23a 23b 23c on lines 21 through 23 above) estimates) in Parts I and II?
Schedule H (Form 1120-F) 2008

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Yes

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For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 1120-F.

Cat. No. 49679V

Schedule H (Form 1120-F) 2008

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Part III

Allocation and Apportionment Methods and Financial Records Used to Complete Parts I and II (continued) Note: Indicate whether the corporation used any of the following financial and other records in Parts I and II to identify deductible expenses allocated and apportioned to ECI.
Yes No

26a b 27 28

Published or other non-public audited financial statements Non-audited financial statements Home office management or other departmental cost accounting reports Other (e.g., home country regulatory reports) (attach schedule)

Part IV

Allocation and Apportionment of Expenses on Books and Records Used to Prepare Form 1120-F, Schedule L
Note. Enter all amounts in Part IV in U.S. dollars.

29

Total expenses per books and records used to prepare Form 1120-F, Schedule L Adjustments for U.S. tax principles (attach schedule ­ see instructions) Total deductible expenses. Combine lines 29 and 30

29 30 31 32a 32b 33

30 31

32a Third-party interest expense included in line 31 b Interbranch interest expense included in line 31 33 34 Bad debt expense included in line 31 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included in line 31 (attach schedule)

34

35

Interbranch expenses per books and records included in line 31 and not 35 included on line 32b (attach schedule) Add lines 32a through 35 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 Reconciliation of allocation and apportionment of deductible expenses to ECI and non-ECI on books and records under Regulations section 1.861-8 (from line 37)
(a) ECI Amounts

36 37

36

37
(c) Total: Add columns (a) and (b)

(b) Non-ECI Amounts

38a Derivative transaction deductible expenses definitely related to ECI 38a or non-ECI under Regulations section 1.861-8 (from line 37) b Other deductible expenses definitely related to ECI or non-ECI 38b (from line 37) 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b Other deductible expenses on books and records not definitely related to ECI or non-ECI allocated and apportioned to ECI and non-ECI (from line 37)

39

40

40

41

Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column 41 (c) must equal line 37 Note. Line 41, column (a) is the total of the deductions reported on Form 1120-F, Section II, lines 12, 13, 14, 16, 17, 19, 20, 21, 22, 23, 24, 25, and 27.
Schedule H (Form 1120-F) 2008