Question

Form 1120 (2018) Schedule J Tax Computation and Payment see instructions) Part I-Tax Computation 1 Check the corporation is a member of a controlled group attach Schedule (Form 11200. See Instructions Tax 2 Thoome tax. See instructions 3 Base erosion minimum tax attach Form 1991) ....... 4 Add lines 2 and 3 . . . . . . . 5 Foreign tax credit attach Form 1118) Credit from Form 8834 (se instruction Electric Veh. Credit . General business credit (attach Form 3800) Combination of credits Credit for prior year minimum taxtach Form 8827) . . Le Bond credits from Form 8912 Pw chased bonds to receive credit se 96 Total credits. Add lines Sa through 5e Total credits. Add lines 5a though sest . . . . . . . . . . . 7 Subtract line from in 4 Тbe > Personal holding company tax attach Schedule PH Form 112011 . 9 Recapture of investment credit (attach Form 4285) Credit kap. 90 Recapture of low-income housing credit attach Form 0611) Proviy holab to give back 70 Interest due under the look back method-completed long-term contracts attach Form 3697) d interest du under the look back method income forecast method tsch Form 1 2 . Alternative tax on qualifying shipping activities attach Form 890) Lt Other instructions- ach statement 910 Total. Add in a through 11 Totalt Addins , and to enter there and on page 1. in 31 Part Il Section 905 Payments (se instructions) 12 2018 net 905 taxabilty aid trom Form 65-8, Part I. column in 2 E rhardonnage line 32 Part -Payments. Refundable Credits, and Section 965 Net Tax Liability 13 2017 overpayment credited to 2018 - 14 2018 estimated tax payments 15 2018 refund applied for on Form 4466. 16 Combine Ines 13, 14, and 15 ( Tax deposited in Form 7004 - Payment with extenfio ( 18 Wahholding the instructions 19 Total payments. Add lines 16, 17, and 18 . 20 Refundable Credits from Form 2430 Oppocurity Zone Trashment through 20 Form 4136 Tox poid.n et Form 8827, ined Prior yoor minimum tex Grefundable d Other attach statement-se instructions) Porto) 21 Total credits. Add lines 20 through 20d. 22 2018 net 985 tax liability from Form 985-8, Part 1 column(d, line 2. See instructions Reedridel.Furzign 23 Total payments, credits, and section 65 net tax labaity. Addlines 19 21 and 22. Enter here and on page 1. line 33 SS 22 Form 112001

address the lines on schedule j -explain the line items

explain lines 5a-5e

Answer 1

5

a.

Foreign Tax credit

Foreign tax credit is nothing but the foreign tax that is paid by a Corporation in addition to the tax that is paid in its own Country. Certain Foreign tax paid can be claimed as credit.It is used to claim a credit for income taxes paid to a foreign country on which U.S. taxes are also paid on the same income. Form 1118 is to be used by any corporation subject to U.S. tax on its income where the same income is subject to an income tax in another country. Such Credit can be claimed using Form 118.

b.

Credit from form 8834

This is relation to the Electric vehicle.There are various credits that are provided to the owners of electric vehicles and it can be claimed under different forms. Form 8834 is used to claim credit for two or three wheeler vehicles with a 2.5 Kilowatt hours. This is the qualified electric vehicle credit.

c.

General business credit 3800

General Business credit Form 3800 is used to calculate the total amount of tax credit that is available including the carry forwards from the previous year. It includes carry forwards from and back other tax years as well. Taxpayers must provide details as to the amount of credits carried forward as well.

d.

credit for prior year minimum tax 8827

This Form is used to determine the minimum tax credit that can be carried forward. It is also used to calculate the credit on Alternative Minimum Tax that can be carried forward as well.If you don't owe AMT for the tax year, but you paid AMT in one or more previous years, you may be eligible to take a credit for prior year minimum tax

e.

bond credits from form 8912

Qualified tax credit bonds are bonds issued under IRC Section 54A. The holder of the bond is generally allowed an annual income tax credit instead of receiving periodic interest payments, and the nonrefundable credit functions as interest paid on the bond.