PDF《2018》

SCHEDULES M-1 and M-2 (Form 1120-F) Department of the Treasury Internal Revenue Service Reconciliation of Income (Loss) and Analysis of Unappropriated Retained Earnings per Books ? Go to www.

irs.gov/Form1120F for the latest information. ? Attach to Form 1120-F. OMB No. 1545-0123

2018 Name of corporation Employer identification number Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3 (see instructions).

1 Net income (loss) per books

2 Federal income tax per books . . . .

3 Excess of capital losses over capital gains

4 Income subject to tax not recorded on books this year (itemize):

5 Expenses recorded on books this year not deducted on this return (itemize): a Depreciation b Charitable contributions $ c Travel and entertainment $ d Other (itemize):

6 Add lines

1 through

5

7 Income recorded on books this year not included on this return (itemize): a Tax-exempt interest $ b Other (itemize):

8 Deductions on this return not charged against book income this year (itemize): a Depreciation . . $ b Charitable contributions $ c Other (itemize):

9 Add lines

7 and

8

10 Income―line

6 less line

9 . . . . Schedule M-2 Analysis of Unappropriated Retained Earnings per Books

1 Balance at beginning of year . . . .

2 Net income (loss) per books

3 Other increases (itemize):

4 Add lines 1, 2, and

3

5 Distributions: a Cash . . . . b Stock . . . . c Property . . .

6 Other decreases (itemize):

7 Add lines

5 and

6

8 Balance at end of year (line

4 less line 7) Who Must File Generally, any foreign corporation that is required to complete Form 1120-F, Section II must complete Schedules M-1 and M-2 (Form 1120-F). However, the following rules apply. Do not complete Schedules M-1, M-2, and M-3 if total assets at the end of the tax year (Schedule L, line 17, column (d)) are less than $25,000. Complete Schedule M-3 in lieu of Schedule M-1 if total assets at the end of the tax year that are reportable on Schedule L are $10 million or more. A corporation filing Form 1120-F that is not required to file Schedule M-3 may voluntarily file Schedule M-3 instead of Schedule M-1. See the Instructions for Schedule M-3 (Form 1120-F) for more information. Foreign corporations that (a) are required to file a Schedule M-3 (Form 1120-F) and have less than $50 million in total assets at the end of the tax year, or (b) are not required to file a Schedule M-3 (Form 1120-F) and voluntarily file a Schedule M-3 (Form 1120-F) must either (1) complete Schedule M-3 (Form 1120-F) entirely, or (2) complete Schedule M-3 (Form 1120-F) through Part I and complete Schedule M-1 instead of completing Parts II and III of Schedule M-3 (Form 1120-F). If the foreign corporation chooses (2), then Schedule M-1, line

1 must equal Schedule M-3 (Form 1120-F), Part I, line 11. See the Instructions for Schedule M-3 (Form 1120-F) for more information. Note: If Schedule M-3 is completed in lieu of Schedule M-1, the corporation is still required to complete Schedule M-2. Specific Instructions Schedule M-1 Line 1. Net income (loss) per books. The foreign corporation must report on line

1 of Schedule M-1 the net income (loss) per the set(s) of books taken into account on Schedule L. Line 5c. Travel and entertainment expenses. Include any of the following. ? Entertainment expenses not deductible under section 274(a). ? Meal expenses not deductible under section 274(n). ? Expenses for the use of an entertainment facility. ? The part of business gifts over $25. ? Expenses of an individual over $2,000 that are allocable to conventions on cruise ships. ? Employee achievement awards of non- tangible property or of tangible property if the value is over $400 ($1,600 if part of a qualified plan). ? The part of luxury water travel expenses not deductible under section 274(m). ? Expenses for travel as a form of education. ? Other nondeductible travel and entertainment expenses. Line 7a. Tax-exempt interest. Report any tax-exempt interest received or accrued, including any exempt-interest dividends received as a shareholder in a mutual fund or other regulated investment company. Also report this same amount in item P at the top of page