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Federal Free Printable Form 8873 (Rev. December 2010) for 2019 Federal Extraterritorial Income Exclusion

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Extraterritorial Income Exclusion
Form 8873 (Rev. December 2010)

Form 8873 (Rev. December 2010) Department of the Treasury Internal Revenue Service Name(s) as shown on return Part I Extraterritorial Income Exclusion OMB No. 1545-1722 ▶ Attach ▶ See to your tax return. separate instructions. Attachment Sequence No. 126 Identifying number Elections and Other Information 1 Check the box if you are electing under section 942(a)(3) to exclude a portion of your gross receipts from foreign trading gross receipts on line 15. Attach a schedule indicating which receipts are being excluded . . . . . . . . . . . . . . 2 Check the box if you are electing to apply the extraterritorial income exclusion provisions to certain transactions involving a FSC (see instructions). Attach a schedule listing the affected transactions . . . . . . . . . . . . . . . . . . ▶ Check the box if the taxpayer is a foreign corporation electing to be treated as a domestic corporation (see instructions) . . ▶ 3 4a b 5 a c Are you excepted from the foreign economic process requirements because your foreign trading gross receipts are $5 million or less? . . . . . . . . . . . . . . . . . . . . . . . If “No,” check the applicable box to indicate how you met the foreign economic process requirements: You met the 50% foreign direct cost test (see instructions). (1) You met the alternative 85% foreign direct cost test (see instructions). (2) 7 8 9 10 11 12 13 14 15 16 17 a b c d e f g h 18 19 20 21 Yes No See instructions before completing lines 5a through 5c. Note: For transactions for which the exclusion is determined using the foreign sale and leasing income method (i.e., line 44 equals line 45), complete only lines 5a and 5c(1). Business activity code b Product or product line Check the applicable box to indicate the basis of your reporting: (1) Transaction-by-transaction: Aggregate on Form 8873 (b) Aggregate on tabular schedule (a) (2) Group of transactions Part II 6 ▶ ▶ (c) Tabular schedule of transactions Foreign Trade Income and Foreign Sale and Leasing Income Caution: If a related person is also eligible for an extraterritorial income exclusion, see Excluded property in the instructions. Sale, exchange, or other disposition of qualifying foreign trade property (a) Foreign Trade Income . Enter the amount from line 6, column (a), attributable to the sale of property formerly leased or rented for use by the lessee outside the United States . Lease or rental of qualifying foreign trade property for use by the lessee outside the United States. Enter the same amount in both columns . . . Services related and subsidiary to the sale, exchange, or other disposition of qualifying foreign trade property . . . . . . . . . . . . . . Enter the amount from line 9, column (a), attributable to the sale of property formerly leased or rented for use by the lessee outside the United States . Services related and subsidiary to the lease of qualifying foreign trade property for use by the lessee outside the United States. Enter the same amount in both columns . Engineering or architectural services for construction projects outside the United States Managerial services provided to unrelated persons (see instructions) . . 6 7 8 9 10 11 12 13 Enter the sum of the amounts from lines 6, 9, 12, and 13 of column (a) attributable to foreign economic processes. Do not include any amounts already included on lines 7, 8, 10, or 11 in column (b) . . . . . . . Foreign trading gross receipts. Add lines 6 through 13 in column (a) . . Add lines 7 through 14 in column (b) . . . . . . . . . . . . Cost of goods sold: Inventory at beginning of year . . . . . . . . . . . . . . . Purchases . . . . . . . . . . . . . . . . . . . . . Cost of labor . . . . . . . . . . . . . . . . . . . . Additional section 263A costs (attach schedule) . . . . . . . . . Other costs (attach schedule) . . . . . . . . . . . . . . . Total. Add lines 17a through 17e . . . . . . . . . . . . . . Inventory at end of year . . . . . . . . . . . . . . . . Subtract line 17g from line 17f . . . . . . . . . . . . . . 17a 17b 17c 17d 17e 17f 17g 17h In column (a), subtract line 17h from line 15. In column (b), subtract line 17h from line 16 . . . . . . . . . . . . . . . . . . . . Other expenses and deductions (see instructions) (attach schedule) . . . 18 19 Foreign trade income. In column (a), subtract line 19 from line 18. If -0- or less, stop here. You do not qualify for the exclusion . . . . . . . . Foreign sale and leasing income. In column (b), subtract line 19 from line 18 20 21 For Paperwork Reduction Act Notice, see instructions. (b) Foreign Sale and Leasing Income 14 15 16 Cat. No. 30732F Form 8873 (Rev. 12-2010) Form 8873 (Rev. 12-2010) Part III Marginal Costing (Note: If you are not using Marginal Costing, skip Part III and go to Part IV.) Section A — Foreign Trade Income Using Marginal Costing Method 22 23 a b c 24 25 26 a b c 27 28 29 30 Foreign trading gross receipts. Enter the amount from line 15 . . Costs and expenses allocable to the amount reported on line 22: Cost of direct material attributable to property sold . . . . . Cost of direct labor attributable to property sold . . . . . . Add lines 23a and 23b . . . . . . . . . . . . . . Subtract line 23c from line 22 . . . . . . . . . . . . Worldwide gross receipts from sales of the product or product line Costs and expenses allocable to the amount reported on line 25: Cost of goods sold attributable to property sold . . . . . . Other expenses and deductions attributable to gross income . . Add lines 26a and 26b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . 23a 23b . . . . . . . . . . . . . . . . . . . . . . . . . . . 23c 24 25 . 26a 26b . . . . . . . . . 26c Subtract line 26c from line 25. (Note: If -0- or less, stop here. You may not use Part III to determine your qualifying foreign trade income. Go to line 37.) . . . . . . . . . . . . . . . . Overall profit percentage. Divide line 27 by line 25. Carry the result to at least three decimal places . Overall profit percentage limitation. Multiply line 22 by line 28 . . . . . . . . . . . . . Foreign trade income using marginal costing. Enter the smaller of line 24 or line 29 . . . . . Page 2 27 28 29 30 Section B — 15% of Foreign Trade Income Method 31 32 33 Multiply line 30 by 15% (.15) . . . . . . . . . . . . . . . Foreign trade income using full costing. Enter the amount from line 20 . Enter the smaller of line 31 or line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 32 33 . . . . . . . . . . . . . . . . . . . . . . . . 34 35 36 Section C — 1.2% of Foreign Trading Gross Receipts Method 34 35 36 Multiply line 22 by 1.2% (.012) . . . Multiply line 30 by 30% (.30) . . . . Enter the smallest of lines 32, 34, or 35 Part IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Extraterritorial Income Exclusion (Net of Disallowed Deductions) 37 38 39 40 41 42 43 44 Enter your foreign trade income from line 20 . . . Multiply line 37 by 15% (.15) . . . . . . . . Enter your foreign trading gross receipts from line 15 Multiply line 39 by 1.2% (.012) . . . . . . . Multiply line 38 by 2.0 . . . . . . . . . . Enter the smaller of line 40 or line 41 . . . . . Enter your foreign sale and leasing income from line 21 Multiply line 43 by 30% (.30) . . . . . . . . 45 Enter the greatest of lines 33, 36, 38, 42, or 44. If you are using the alternative computation, see instructions for the amount to enter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 40 41 . . . . . . . . . . . . . . . . . . . . 37 38 . . . . . . . . . . . . . . . . . . . . . 42 43 44 45 Note: If you do not have a reduction for international boycott operations, illegal bribes, kickbacks, etc. (see the instructions for line 50), skip lines 46 through 51 and enter on line 52 the amount from line 45. 46 If line 44 equals line 45, divide the amount on line 45 by the amount on line 43. Otherwise, divide the amount on line 45 by the amount on line 37. Carry the result to at least three decimal places . . . . . . 47 If line 44 equals line 45, enter the amount from line 19, column (b). Otherwise, enter the amount from line 19, column (a) . . . . . 47 Multiply line 46 by line 47 . . . . . . . . . . . . . . . . . . . . . . Add lines 45 and 48 . . . . . . . . . . . . . . . . . . . . . . . . Reduction for international boycott operations, illegal bribes, kickbacks, etc. (see instructions). 48 49 50 46 . . . . . . 48 49 50 51 Qualifying foreign trade income. Subtract line 50 from line 49. If -0- or less, stop here. You do not qualify for the exclusion . . . . . . . . . . . . . . . . . . . . . . . . 51 52 Extraterritorial income exclusion (net of disallowed deductions). Subtract line 48 from line 51. Enter the result here and include it on the “other deductions” line of your tax return or schedule (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Form 8873 (Rev. 12-2010)
Extracted from PDF file 2018-federal-form-8873.pdf, last modified March 2009

More about the Federal Form 8873 Individual Income Tax TY 2018

We last updated the Extraterritorial Income Exclusion in February 2019, so this is the latest version of Form 8873, fully updated for tax year 2018. You can download or print current or past-year PDFs of Form 8873 directly from TaxFormFinder. You can print other Federal tax forms here.

Other Federal Individual Income Tax Forms:

TaxFormFinder has an additional 774 Federal income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 1040 U.S. Individual Income Tax Return
Form 1040-V Payment Voucher
1040 (Schedule B) Interest and Ordinary Dividends
1040 (Schedule A) Itemized Deductions
Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return

Download all  tax forms View all 775 Federal Income Tax Forms


Form Sources:

The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8873 from the Internal Revenue Service in February 2019.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Federal Form 8873

We have a total of six past-year versions of Form 8873 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2018 Form 8873

Form 8873 (Rev. December 2010)

2017 Form 8873

Form 8873 (Rev. December 2010)

2016 Form 8873

Form 8873 (Rev. December 2010)

Extraterritorial Income Exclusion 2015 Form 8873

Form 8873 (Rev. December 2010)

Extraterritorial Income Exclusion 2012 Form 8873

Form 8873 (Rev. December 2010)

Extraterritorial Income Exclusion 2011 Form 8873

Form 8873 (Rev. December 2010)


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