Schedule K-3 from a partnership
S Corporations should enter the Schedule K-3 data in the
K3
screens in the K1 1065, 1041
input screen folder. UltraTax/1120 includes the data entered in the K3
screens in the Schedule K-2.C Corporations should enter the Schedule K-3 data in the
1118
and 1118-2
screens in the K1 1065, 1041
input screen folder. The following is a guide for entering data from the Schedule K-3 to the 1118
and 1118-2
screens.Schedule K-3 (Form 1065) Part II. Foreign Tax Credit Limitation
Column (a) U.S. Source
- Don't report amounts in this column on Form 1118 unless you elect to resource such income under a U.S. income tax treaty.
Column (f) Sourced by shareholder
- Determine the source and separate category of the income reported in this column.
Section 1, Gross Income Lines 1 through 20
Form 1118, Schedule A, requires a corporation to separately report certain types of gross income by source and separate category. Schedule K-3, Part II, lines 1 through 20, generally follow the separately reported types of gross income on Schedule A.
Section 1 - Gross Income | Form 1118, Schedule A |
|---|---|
Line 1. Sales | Column 7. Sales |
Line 2. Gross income from performance of services | Column 8. Gross Income From Performance of Services |
Lines 3, 4, and 10. Rental income, royalties, and license fees | Column 6. Gross Rents, Royalties, and License Fees |
Line 5. Guaranteed payments | Column 11. Other |
Line 6. Interest income | Column 5. Interest |
Lines 7 and 8. Ordinary dividends and qualified dividends | Column 4. Dividends |
Lines 11 through 15. Capital gains | Column 11. Other |
Line 16. Section 986(c) gain | Column 9. Currency Gain |
Line 17. Section 987 gain | Column 9. Currency Gain |
Line 18. Section 988 gain | Column 9. Currency Gain |
Line 19. Section 951(a) inclusions | Column 3(a). Inclusion Under Sections 951(a)(1) and 951A - Exclude Gross-Up |
Line 20. Other income | Column 11. Other |
Section 2, Deductions Lines 25 through 54
Form 1118, Schedule A, requires a corporation to separately report certain types of deductions and losses by source and separate category.
Section 2 - Deductions | Form 1118, Schedule A |
|---|---|
Line 25. Expenses allocable to sales income | Column 13(f). Expenses Allocable to Sales Income |
Line 26. Expenses allocable to gross income from performance of services | Column 13(g). Expenses Allocable to Gross Income From Performance of Services |
Lines 27 through 30. Capital losses | Column 13(j). Other Allocable Deductions or Form 1118, Schedule H, Part II, column (c) |
Lines 31, 37 and 44 through 45. Other deduction | Column 13(j). Other Allocable Deductions or Form 1118, Schedule H, Part II, column (c) |
Lines 33 and 35. Allocable rental, royalty, and licensing expenses | Column 13(d). Depreciation, Depletion, and Amortization |
Lines 34 and 36. Allocable rental, royalty, and licensing expenses | Column 13(e). Other Allocable Expenses |
Line 38. Charitable contributions | Not reported on Form 1118. Charitable contributions are allocable to U.S. source income |
Line 45. Foreign taxes deductible, but not creditable | Not reported on Form 1118. You may claim a deduction for foreign taxes deductible. |
Line 46. Section 986(c) loss | Column 13(h). Currency Loss or Form 1118, Schedule H, Part II, column (c) |
Line 47. Section 987 loss | Column 13(h). Currency Loss or Form 1118, Schedule H, Part II, column (c) |
Line 48. Section 988 loss | Column 13(h). Currency Loss or Form 1118, Schedule H, Part II, column (c) |
Line 49. Other allocable deductions | Column 13(j). Other Allocable Deductions |
Schedule K-3 (Form 1065) Part III. Other Information for Preparation of Form 1116 or 1118
Section 4, Foreign Taxes
This section reports your share of the foreign taxes paid or accrued by the partnership by separate category and source.
Section 1 - Foreign Taxes | Form 1118, Schedule B |
|---|---|
Line 1. | Part I Foreign Taxes Paid, Accrued, and Deemed Paid |
Line 2. | Part II, line 3 Reductions of taxes paid, accrued, or deemed paid |
