FOGEIForeign Oil and Gas Extraction Income (tax term)
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FOGEI and FORI may also include interest income earned on the working capital of a person engaged in those activities and gain or loss from a Sec.
The FOGEI and FORI characterization applies not only to the taxpayers directly held business operations but also to income or loss received by the taxpayer from its ownership interest in a partnership or S corporation or from its beneficial interest in a trust.
FOGEI and FORI Foreign Tax Credit Limitation Examples
Example 1: In year 1, the taxpayer's FOGEI and FORI in Country^ are 5450,000, on which there is a local foreign income tax of $225,000.
Example 2: In year 2, the taxpayer's FOGEI and FORI in Country A are $500,000, on which there is a local foreign income tax of $200,000.
907(a)(2) (A), the maximum allowable credit is calculated by multiplying the corporation's net FOGEI and FORI by the highest rate of tax specified under Sec.
Currently, no specific fine items or codes on Schedule K-1 are used to identify FOGEI and FORI and the related foreign tax credit to the entity's investors or beneficiaries.
In addition to the lack of detail on Schedules K-1 with respect to FOGEI and FORI, guidance is lacking on the forms used to report foreign tax credits.
The petroleum and coal products manufacturing industry was responsible for 90.2 percent of the FOGEI gross income and 89.9 percent of FOGEI taxes.
Those countries together accounted for over 29.0 percent of all FOGEI. Norway (7.4 percent), Nigeria (7.1 percent), Bermuda (5.3 percent) and Japan (5.1 percent), were the next highest in terms of foreign oil and gas extraction income.
Foreign oil and gas extraction income (FOGEI).--FOGEI is gross income from the extraction of oil and gas, as well as from the sale of assets used in the extraction of oil and gas, or from related services, working capital, dividend and partnership distributions, and any other oil and gas extraction income.