Schedule V (Form 1120-F), List of Vessels or Aircraft, Operators, and Owners, is an Internal Revenue Service (IRS) schedule that a foreign corporation attaches to its Form 1120-F. It reports basic information on each vessel or aircraft for which the corporation is subject to the 4% rate of tax under section 887, and it totals the U.S. source gross transportation income (USSGTI). On this page you can fill out the form online on FillingPDF and download or print the completed PDF. The IRS publishes the form and its instructions at www.irs.gov/Form1120F.
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What is Schedule V (Form 1120-F)?
Schedule V (Form 1120-F), List of Vessels or Aircraft, Operators, and Owners, is the IRS schedule a foreign corporation uses to report basic information for each vessel or aircraft on which it is subject to the 4% tax on U.S. source gross transportation income (USSGTI) under section 887.
For each vessel or aircraft, one column (A through D) records the name or aircraft type, the ID number, whether it was chartered in or chartered out, the registered owner and the operator with their EIN or SSN, and the USSGTI derived from it. Lines 10 through 12 then total the USSGTI, subtract any amount exempt by treaty and carry the result to Form 1120-F, Section I, line 9, column (b).
The IRS instructions define USSGTI as gross income, without reduction for deductions or losses, that is transportation income under section 863(c)(3) and sourced in the United States under section 863(c)(2)(A). Income taxable as effectively connected under section 887(b)(4), income not sourced under section 863(c)(2) and income taxable in a U.S. possession are outside that definition.
The schedule is identified as OMB No. 1545-0123, revision Rev. December 2022. It is not filed alone: it is attached to Form 1120-F, U.S. Income Tax Return of a Foreign Corporation.
Who needs to file Schedule V (Form 1120-F)?
Foreign corporations that are subject to the 4% tax on their USSGTI under section 887 must complete Schedule V (Form 1120-F). The instructions tell you to complete a separate column for each vessel or aircraft on which you are subject to that tax. Examples the instructions give:
- a bareboat lessor: one column for each vessel or aircraft leased out during the tax year from which you derived USSGTI;
- an operator, including a time or voyage charterer: one column for each vessel or aircraft you operated during the year and from which you derived USSGTI;
- a corporation that provided services directly related to the use of vessels or aircraft: one column for each vessel or aircraft for which those services were performed and USSGTI was derived.
The instructions note that a foreign corporation may derive USSGTI directly, through a pool, joint venture or joint service arrangement, as a partner in a partnership, or as the beneficiary of a trust or estate.
If a vessel or aircraft produces no income subject to the 4% rate, it does not belong on the schedule. If you derive USSGTI from more than four vessels or aircraft, attach continuation statements in the same size and format.
When to file Schedule V (Form 1120-F)
Schedule V (Form 1120-F) is attached to the foreign corporation's Form 1120-F income tax return, so it is due whenever that return is filed. The Schedule V instructions set no separate deadline and refer you to the Instructions for Form 1120-F for the time, place and manner of filing the return.
If you derive USSGTI from more than four vessels or aircraft, prepare the continuation statements at the same time and attach them. If you claim a treaty exemption on line 11, attach Form 8833 to the schedule when you file.
Documents you need
- Continuation statements, in the same size and format as Schedule V: attach them if you derive USSGTI from more than four vessels or aircraft.
- Statement describing the method used to determine the USSGTI from each vessel or aircraft, with the calculations, as the instructions for line 9 and line 4 require.
- Line 3 is Yes and the vessel or aircraft is under a bareboat lease or sublease to you as operator: name and address of the lessor, and the term of the lease or charter with the method for calculating the rental portion.
- Line 4 is Yes and you are the bareboat lessor: the country of registration, the name and address of each lessee or charterer, the term of the lease and the number of days in the tax year it was under lease.
- Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b): attach it if you claim a treaty exemption and enter an amount on line 11.
How to fill out Schedule V (Form 1120-F)
Enter corporation name and EIN
At the top, enter the name of the corporation and its employer identification number, matching Form 1120-F.
Assign one column per vessel or aircraft
Use columns A through D, one for each vessel or aircraft on which you are subject to the 4% tax under section 887. If you have more than four, prepare continuation statements in the same format.
Enter the name or aircraft type
Line 1: write the name of the vessel or the type of aircraft in each column.
Enter the ID number
Line 2: for a vessel, enter the Lloyd's register number; for an aircraft, enter the registration number.
Answer the charter questions
Lines 3 and 4: check Yes or No for chartered in and chartered out. If you answer Yes, check the instructions to see which statement you must attach.
Identify the registered owner
Line 5: enter the registered owner's name, or "Same as filer above" if you are the owner. Line 6: enter its EIN or SSN, "Same as filer above," or "Not known."
Identify the operator
Line 7: enter the operator's name, "Same as filer above" or "Not known." Line 8: enter the operator's EIN or SSN with the same options.
Enter USSGTI for each vessel
Line 9: enter the U.S. source gross transportation income you derived from each vessel or aircraft, in U.S. dollars, and attach the statement describing the method used.
Total the income on line 10
Add the line 9 amounts in columns A through D, plus the line 9 amounts of any continuation statements.
Report any treaty exemption
Line 11: enter the part of line 10 that is exempt by treaty and attach Form 8833. Line 12: subtract line 11 from line 10 and enter the result also on Form 1120-F, Section I, line 9, column (b).
Review and download the PDF
Check that every column is complete, that all required statements are ready, then download or print the completed PDF from FillingPDF and attach it to Form 1120-F.
How to submit Schedule V (Form 1120-F)
Schedule V (Form 1120-F) has no filing channel of its own: it is attached to Form 1120-F and travels with that return.
- With Form 1120-F: attach the completed schedule, with any continuation statements, the statements required for lines 3, 4 and 9, and Form 8833 if you claim a treaty exemption on line 11.
- Time, place and manner: follow the Instructions for Form 1120-F, which the Schedule V instructions name as the guide for filing the return.
- More information: the form directs you to www.irs.gov/Form1120F for instructions and the latest information.
All information on the schedule must be in English and all amounts in U.S. dollars. FillingPDF lets you fill out and download the PDF; submission follows the IRS channels that apply to Form 1120-F.
Common mistakes to avoid
- Leaving out the statement describing the method used to determine USSGTI; the instructions say you must attach it to Schedule V.
- Reporting amounts in a foreign currency or entering text in another language; the instructions require English and U.S. dollars.
- Entering the filer's name or number on lines 5 through 8 instead of "Same as filer above" when you are the registered owner or the operator.
- Leaving lines 6 or 8 blank when the EIN or SSN is unknown; the instructions say to enter "Not known."
- Squeezing more than four vessels or aircraft onto the form instead of attaching continuation statements in the same format.
- Entering a treaty-exempt amount on line 11 without attaching Form 8833.
- Allocating charter income by the lessee-operator's net income; the instructions say that method is not reasonable.
- Counting days the vessel spent in U.S. waters for repairs or maintenance in the charter-income ratio; those days are excluded from both numerator and denominator.
- Forgetting to add the line 9 amounts of continuation statements into line 10.
Frequently asked questions
What is Schedule V (Form 1120-F)?
Schedule V (Form 1120-F) is the IRS schedule where a foreign corporation lists each vessel or aircraft on which it is subject to the 4% tax under section 887, with its owner, operator and U.S. source gross transportation income. It is attached to Form 1120-F.
Who has to file Schedule V?
Foreign corporations subject to the 4% tax on their U.S. source gross transportation income under section 887 must complete it. Bareboat lessors, operators including charterers, and corporations providing services directly related to vessels or aircraft each complete a column per vessel or aircraft.
What if I have more than four vessels or aircraft?
Attach continuation statements using the same size and format as Schedule V. When you total line 10, include the line 9 amounts from those statements as well as columns A through D.
What do I enter on line 2 for a vessel or an aircraft?
For a vessel, enter the Lloyd's register number. For an aircraft, enter the registration number. Complete one column for each vessel or aircraft.
What do I write if I am the owner or operator myself?
Enter "Same as filer above" on lines 5 and 6 if you are the registered owner, and on lines 7 and 8 if you are the operator. If you are neither and do not know the name, EIN or SSN, enter "Not known."
Do I have to attach a statement to Schedule V?
Yes, a statement describing the method used to determine USSGTI from each vessel or aircraft. Yes answers on lines 3 or 4 for certain bareboat leases require further items, such as lessor or lessee details and lease terms. See the instructions for each line.
How do I claim a treaty exemption on Schedule V?
Enter the exempt part of line 10 on line 11 and attach Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b). Line 12, line 10 minus line 11, carries to Form 1120-F, Section I, line 9, column (b).
Where do I send Schedule V (Form 1120-F)?
You do not send it separately. Attach it to the foreign corporation's Form 1120-F and file them together following the Instructions for Form 1120-F for time, place and manner.
Can I fill out Schedule V (Form 1120-F) online on FillingPDF?
Yes, you can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the schedule with the IRS; you submit it with Form 1120-F through the IRS channels.
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