Publication 553 |
2000 Tax Year |
2000 Changes
Foreign Earned Income
Exclusion Increased
For 2000, the maximum foreign earned income exclusion has increased
from $74,000 to $76,000.
See Publication 54,
Tax Guide for U.S. Citizens and Resident
Aliens Abroad, to see whether you meet the requirements to
exclude your foreign earned income.
New Schedule N (Form 1120)
for Foreign Operations
Corporations that file Form 1120, U.S. Corporation Income Tax
Return, and certain other income tax returns may have to attach
new Schedule N (Form 1120), Foreign Operations of U.S.
Corporations, to their returns. The schedule must be attached
if, at any time during the tax year, the corporation had assets in, or
operated a business in, a foreign country or U.S. possession. For more
information, see the instructions for Schedule N (Form 1120).
FSC Repeal and Extraterritorial
Income Exclusion
The foreign sales corporation (FSC) rules have been repealed.
However, certain FSCs with valid elections may continue to use the FSC
rules until January 1, 2002.
Generally, for transactions after September 30, 2000, qualifying
foreign trade income is excluded from taxable income. Individuals,
corporations (including S corporations), partnerships, and other
pass-through entities are entitled to the exclusion. The exclusion is
figured on new Form 8873, Extraterritorial Income Exclusion.
For more information about the extraterritorial income exclusion,
see the instructions for Form 8873.
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