951A/962 election

Technical topics regarding tax preparation.
#1
supdat  
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Hello. I hope everyone's tax season is done, or almost done. I had some individual clients with GILTI income, for which I made the 962 election. Our tax software did not support it, so I had to prepare pdf forms as attachments and calculate and enter several manual overrides.

Wondering if anyone else had the 962 election, and whether their software supported it?
 

#2
MIKEB  
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I am dealing with this now for a couple of clients. Ultra Tax does not generate the 8992 for Form 1065 to compute GILTI. I guess I will have to paper file and manually prepare 8992. I was planning on doing the 962 election on the 1040. It looks like UT has input for the 962 election info, but I have not yet completed the 1065.
Any reason not to do the 962 election on the 1040?
 

#3
supdat  
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Sorry for the late reply on this. With the 962 election, only the amount of U.S. federal tax actually paid will be considered PTI.
So if client will receive a distribution from a CFC to which the 962 election applies, the distribution will be taxed as a dividend to the extent the amount distributed exceeds the federal tax paid with respect to the 962 election. I would say prepare a model and run the numbers both ways to determine which way makes the most sense for the client, election or no election.

Any further comments on Ultra Tax? Would it be able to compute the tax with the 962 election for the individual if there was no partnership in between?
 


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