Get the free Form 8873

This form is used to claim the extraterritorial income exclusion for foreign trade income and foreign sale and leasing income, detailing the corresponding calculations and elections related to these

How to fill out form 8873

How to fill out Form 8873

1. Obtain a copy of Form 8873 from the IRS website or your tax preparation software.
2. Fill out your personal information at the top of the form, including your name and taxpayer identification number.
3. Complete Part I by providing the required information about your qualified electric vehicle.
4. In Part II, calculate your credit amount based on the specific details provided in the instructions.
5. Double-check all entries for accuracy and completeness.
6. Attach Form 8873 to your tax return when you file, or include it as part of your electronic submission.

Who needs Form 8873?

1. Taxpayers who purchased a qualified electric vehicle and wish to claim the credit.
2. Individuals who meet the criteria set forth by the IRS regarding specific electric vehicle models and purchase dates.

People Also Ask about

What is the extra territorial income?

Extraterritorial income is the gross income of the taxpayer attributable to foreign trading gross receipts (defined below). The taxpayer reports all of its extraterritorial income on its tax return.

What is the meaning of extra territoriality?

noun. the privilege granted to some aliens, esp diplomats, of being exempt from the jurisdiction of the state in which they reside. the right or privilege of a state to exercise authority in certain circumstances beyond the limits of its territory.

Who files form 8873?

Form 8873 is attached to the taxpayers income tax return. Both corporate and non-corporate taxpayers who have qualifying transactions may now be required to file Form 8873. The exclusion reported on Form 8873 was created by the Foreign Sales Corporation (FSC) Repeal and Extraterritorial Income Exclusion Act of 2000.

What is the extraterritorial income?

Extraterritorial income is the gross income of the taxpayer attributable to foreign trading gross receipts. The taxpayer reported all of its extraterritorial income on its tax return. The taxpayer used Form 8873 to calculate its exclusion from income that is qualifying foreign trade income.

What is a territorial tax income?

Territorial taxation is a system that excludes foreign earnings from a country's domestic tax base. This is common throughout the world and is the opposite of worldwide taxation, where foreign earnings are included in the domestic tax base.

What is the extra territorial area?

If something is extraterritorial, it's beyond the boundaries or control of a particular country, state, or region. This adjective is mainly used in a legal context.

For pdfFiller’s FAQs

What is Form 8873?

Form 8873 is a tax form used to claim the Renewable Electricity Production Credit, which allows taxpayers to claim a tax credit for producing renewable electricity.

Who is required to file Form 8873?

Taxpayers who generate electricity from qualified renewable resources and wish to claim the Renewable Electricity Production Credit are required to file Form 8873.

How to fill out Form 8873?

To fill out Form 8873, you must provide information about the eligible renewable energy production, including the type of energy generated, the amount of electricity produced, and the period during which the electricity was produced.

What is the purpose of Form 8873?

The purpose of Form 8873 is to allow taxpayers to claim a tax credit for the production of electricity from renewable sources, encouraging the development of alternative energy.

What information must be reported on Form 8873?

Form 8873 requires reporting information such as the taxpayer's name, the type of renewable energy produced, the quantity of electricity generated, and the time period for which the credit is being claimed.