Form 5472 Information Return

Technical topics regarding tax preparation.
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21-Feb-2015 9:44am
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College Station, TX
Non Resident client formed a domestic LLC (disregarded entity) for the purpose of buying a duplex rental property. My understanding is that this client would report the rental activity on his Schedule E, but would also have to file a proforma 1120 along with Form 5472 since he is a foreign person.

The instructions for the 5472 for Part IV (Monetary Transactions Between Reporting Corporations and Foreign Related Party) say that if any transaction or series of transactions do not exceed a total of $50,000, the amount may be reported as "$50,000 or less".

My question is if all of the transactions total less than $50,000, do I write in "$50,000 or less" on the total lines only, i.e. Line 13 and Line 26, or must I write it on the line describing the nature of the transaction, i.e. lines 1-12 or 14-25?

Thanks.

David
 

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