A Basic Guide to GILTI and Schedule I-1 for Form 5471

A Basic Guide to GILTI and Schedule I-1 for Form 5471

Tax Law
By Anthony Diosdi Schedule I-1 for Form 5471 is used to report information determined at the CFC level with respect to amounts used in “global intangible low-taxed income” or GILTI inclusions by U.S. shareholders. The information from Schedule I-1 is used by U.S. shareholder(s) of a CFC to file IRS Form 8892, U.S. Shareholder Calculation of GILTI, and may assist in the completion of Form 1118 and 1116. This article discusses GILTI and how it is reported on Schedule I-1.What is GILTI?For years, tax planning for international outbound taxation remained the same, mitigation of Subpart F income, maximization of foreign tax credits, and transfer pricing. The 2017 Tax Cuts and Jobs Act has broken the monotony associated with international tax planning for outbound transactions and added a new category for…
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