Federal housing law
Form 1120-F (Schedule H) — Deductions Allocated to Effectively Connected Income Under Regulations Section 1.861-8
Federal housing law as enacted — verbatim and citable.
- Edition
- 2026-10-03
- Last updated
- 2026-10-04
- Jurisdiction
- United States
Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/f1120fh.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).
Otherwise, specify currency:
13 Remaining deductible expenses on the books of the home office not definitely related solely to ECI or non-ECI. Subtract line 12 from line 7 . . . . . . . . . . . . . . . . . . . . . . 13 14 Average exchange rate used to convert amounts to U.S. dollars (see instructions) . . . . . . . 14 15 Enter the amount from line 13. If line 13 is stated in functional currency, divide line 13 by line 14 . . 15 16 Remaining home office deductible expenses on line 15 allocated and apportioned under Regulations section 1.861-8 to ECI (attach computation) . . . . . . . . . . . . . . . . . . . 16 17 Enter the amount from line 11. If line 11 is stated in functional currency, divide line 11 by line 14 . . 17 18 Total home office deductible expenses allocated and apportioned to ECI. Add lines 16 and 17 . . . 18 19 Total deductible expenses from other non-U.S. locations allocated and apportioned to ECI . . . . 19 20 Total deductible expenses allocated and apportioned to ECI. Add lines 18 and 19 and enter the amount here and on Form 1120-F, Section II, line 26 . . . . . . . . . . . . . . . . 20 Part III Allocation and Apportionment Methods and Financial Records Used To Complete Parts I and II Note: Enter the amounts in Part III, lines 21a, 21b, 22a, and 22b in U.S. dollars.
If one or more methods used are different than in prior year, check this box . . . . . . . . . . . . . . . . . .
If any amount on line 20 is recorded as an interbranch amount on books and records used to prepare Form 1120-F, Schedule L,
For Paperwork Reduction Act Notice, see the Instructions for Form 1120-F. Cat. No. 49679V Schedule H (Form 1120-F) 2025 Created 7/28/25
Schedule H (Form 1120-F) 2025 Page 2 Part III Allocation and Apportionment Methods and Financial Records Used To Complete Parts I and II (continued) Note: Indicate whether the corporation used any of the following financial and other records in Parts I and II to identify deductible expenses allocated and apportioned to ECI.
Yes No 26a Published or other non-public audited financial statements . . . . . . . . . . . . . . . . . . b Non-audited financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Home office management or other departmental cost accounting reports . . . . . . . . . . . . . . 28 Other (for example, home country regulatory reports or written, contemporaneous functional analyses) (attach statement)
| Part IV Allocation and Apportionment of Expenses on Books and Records Used To Prepare Form 112 Note: Enter all amounts in Part IV in U.S. dollars. | 20-F, | Schedule L | |||
|---|---|---|---|---|---|
| 29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b |
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| Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
31 |
| Part IV Allocation and Apportionment of Expenses on Books and Records Used To Prepare Form 112 Note: Enter all amounts in Part IV in U.S. dollars. | 20-F, | Schedule L | |||
|---|---|---|---|---|---|
| 29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b |
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| Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
36 |
| Part IV Allocation and Apportionment of Expenses on Books and Records Used To Prepare Form 112 Note: Enter all amounts in Part IV in U.S. dollars. | 20-F, | Schedule L | |||
|---|---|---|---|---|---|
| 29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
29 Total expenses per books and records used to prepare Form 1120-F, Schedule L . . . . . . . . . . . . . . . . . . . . . . 29 30 Adjustments for U.S. tax principles (attach statement—see instructions) . . 30 31 Total deductible expenses. Combine lines 29 and 30 . . . . . . . . . . . . . . . . 32a Third-party interest expense included on line 31 . . . . . . . . . . 32a b |
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| Interbranch interest expense included on line 31 . . . . . . . . . . 32b 33 Bad debt expense included on line 31 . . . . . . . . . . . . . 33 34 Other third-party deductible expenses not allocated or apportioned to ECI and non-ECI under Regulations section 1.861-8 included on line 31 (attach statement) . . . . . . . . . . . . . . . . . . . . . . 34 35 Interbranch expenses per books and records included on line 31 and not included on line 32b (attach statement) . . . . . . . . . . . . . 35 36 Add lines 32a through 35 . . . . . . . . . . . . . . . . . . . . . . . . . 37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under Regulations section 1.861-8. Subtract line 36 from line 31 . . . . . . . . . . . . . . . |
37 |
| Part IV Allocation and Apportionment of Expenses on Books and Records Used To Prepare Form 112 Note: Enter all amounts in Part IV in U.S. dollars. | 20-F, | Schedule L | |||
|---|---|---|---|---|---|
| Reconciliation of allocation and apportionment of deductible expenses to ECI and non-ECI on books and records under Regulations section 1.861-8 (from line 37) |
Reconciliation of allocation and apportionment of deductible expenses to ECI and non-ECI on books and records under Regulations section 1.861-8 (from line 37) |
(a) ECI Amounts |
(b) Non-ECI Amounts |
(b) Non-ECI Amounts |
(c) Total: Add columns (a) and (b) |
| 38aDerivative transaction deductible expenses definitely related to ECI or non-ECI under Regulations section 1.861-8 (from line 37) . . **b **Other deductible expenses definitely related to ECI or non-ECI (from line 37) . . . . . . . . . . . . . . . . . 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b . . . . . . . . . . . . . . 40 Other deductible expenses on books and records not definitely related to ECI or non-ECI that are allocated and apportioned to ECI and non-ECI (from line 37) . . . . . . . . . . . . 41 Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column (c) must equal line 37 . . . . . . . . . . . . . . . . |
38a | ||||
| 38aDerivative transaction deductible expenses definitely related to ECI or non-ECI under Regulations section 1.861-8 (from line 37) . . **b **Other deductible expenses definitely related to ECI or non-ECI (from line 37) . . . . . . . . . . . . . . . . . 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b . . . . . . . . . . . . . . 40 Other deductible expenses on books and records not definitely related to ECI or non-ECI that are allocated and apportioned to ECI and non-ECI (from line 37) . . . . . . . . . . . . 41 Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column (c) must equal line 37 . . . . . . . . . . . . . . . . |
38b | ||||
| 38aDerivative transaction deductible expenses definitely related to ECI or non-ECI under Regulations section 1.861-8 (from line 37) . . **b **Other deductible expenses definitely related to ECI or non-ECI (from line 37) . . . . . . . . . . . . . . . . . 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b . . . . . . . . . . . . . . 40 Other deductible expenses on books and records not definitely related to ECI or non-ECI that are allocated and apportioned to ECI and non-ECI (from line 37) . . . . . . . . . . . . 41 Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column (c) must equal line 37 . . . . . . . . . . . . . . . . |
39 | ||||
| 38aDerivative transaction deductible expenses definitely related to ECI or non-ECI under Regulations section 1.861-8 (from line 37) . . **b **Other deductible expenses definitely related to ECI or non-ECI (from line 37) . . . . . . . . . . . . . . . . . 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b . . . . . . . . . . . . . . 40 Other deductible expenses on books and records not definitely related to ECI or non-ECI that are allocated and apportioned to ECI and non-ECI (from line 37) . . . . . . . . . . . . 41 Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column (c) must equal line 37 . . . . . . . . . . . . . . . . |
40 | ||||
| 38aDerivative transaction deductible expenses definitely related to ECI or non-ECI under Regulations section 1.861-8 (from line 37) . . **b **Other deductible expenses definitely related to ECI or non-ECI (from line 37) . . . . . . . . . . . . . . . . . 39 Total deductible expenses definitely related to ECI or non-ECI. Add lines 38a and 38b . . . . . . . . . . . . . . 40 Other deductible expenses on books and records not definitely related to ECI or non-ECI that are allocated and apportioned to ECI and non-ECI (from line 37) . . . . . . . . . . . . 41 Total deductible expenses on books and records allocated and apportioned to ECI and non-ECI. Add lines 39 and 40. Column (c) must equal line 37 . . . . . . . . . . . . . . . . |
41 |
Note: Line 41, column (a), is the total of the deductions reported on Form 1120-F, Section II, lines 12, 13, 14, 16, 17, 19 through 24, and 27.
Schedule H (Form 1120-F) 2025