Hi, this is Andrew Mitchell. Again, in an earlier video, I discussed page 1 of forum 54 71. In this video, I'm going to discuss pages 2 through 4. Starting on Schedule B at the top of page 2, it has the name, address, and identifying number of the US shareholders. Then, it has the description of the shares that each shareholder owns, the number of shares owned at the beginning and end of the year, and the percentage for subpart F income purposes. Generally, this percentage represents the ownership of shares. However, it can have different meanings. Schedule C is the income statement. Not all filers need to complete Schedule C. The instructions for form 54 71 provide a table that indicates which filers need to prepare Schedule C. Generally, category three and above filers need to complete Schedule C. Additionally, for filers, the Schedule C income statement needs to be prepared on a US GAAP basis. This means that the income and expenses should be shown in both the local currency and US dollars. To convert the local currency into US dollars, I usually use the average exchange rate for the year. However, if it's a hyperinflationary currency, the Dasom method needs to be used. Although, hyperinflationary currencies are rare nowadays. On the income statement, there are sections for other income and other deductions. The instructions indicate that schedules need to be attached for these sections. It's important to attach these schedules to ensure the accuracy and completeness of the form 54 71. The income statement also includes income taxes and net income. Moving on to page three, it contains information about income taxes paid to foreign countries. Typically, only one country is listed, but there can be multiple if applicable. Schedule F is the balance sheet. All...
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Video instructions and help with filling out and completing Can Form 1120 Schedule M 3 Subsidiary
