1120-S Schedule K- Shareholders' Pro Rata Share Items - International

SCHEDULE K-2
(Form 1120-S)

Shareholders’ Pro Rata Share Items—International

OMB No. 1545-0123

2021

Attach to Form 1120-S.
Go to www.irs.gov/Form1120S for instructions and the latest information.
▶

Department of the Treasury
Internal Revenue Service

▶

Employer identification number (EIN)

Name of corporation

A

Check to indicate the parts of Schedule K-2 that apply.
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Corporation’s Other Current Year International Information

Check box(es) for additional specified attachments. See instructions.
1. Gain on personal property sale
4. Foreign tax translation
2. Foreign oil and gas taxes
5. High-taxed income
3. Splitter arrangements

6. Section 267A disallowed deduction

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No

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2
3
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7. Form 8858 information
8. Form 5471 information

10. Shareholder loan transactions
11. Entity treatment for certain S corporations

9. Other forms

12. Other international items
(attach description and statement)

✢❏❘

Part I

Yes

Does Part I apply? If “Yes,” complete and attach Part I . .
Does Part II apply? If “Yes,” complete and attach Part II .
Does Part III apply? If “Yes,” complete and attach Part III .
Does Part IV apply? If “Yes,” complete and attach Part IV .
Does Part V apply? If “Yes,” complete and attach Part V .
Does Part VI apply? If “Yes,” complete and attach Part VI .
Does Part VII apply? If “Yes,” complete and attach Part VII

✣❈❅❃❋

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3
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7

Part II
Foreign Tax Credit Limitation
Section 1—Gross Income
Foreign Source
Description
1

(a) U.S. source

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
shareholder

(g) Total

Sales
A
B
C

2

Gross income from performance of services
A
B
C

3

Gross rental real estate income
A
B
C

4

Other gross rental income
A
B
C

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

Cat. No. 73973Q

Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

2

EIN

Name of corporation

Part II
Foreign Tax Credit Limitation (continued)
Section 1—Gross Income (continued)
Foreign Source
Description
5

Reserved for future use .

6

Interest income

(a) U.S. source
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(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
shareholder

(g) Total

.

A
B
C
7

Ordinary dividends (exclude amount
on line 8)
A
B
C

8

Qualified dividends
A
B
C

9

Reserved for future use .

10

Royalties and license fees

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A
B
C
11

Net short-term capital gain
A
B
C

12

Net long-term capital gain
A
B
C

13

Collectibles (28%) gain
A
B
C

14

Unrecaptured section 1250 gain
A
B
C
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

3

EIN

Name of corporation

Part II
Foreign Tax Credit Limitation (continued)
Section 1—Gross Income (continued)
Foreign Source
Description
15

(a) U.S. source

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
shareholder

(g) Total

Net section 1231 gain
A
B
C

16
17
18

Section 986(c) gain .
Section 987 gain . .
Section 988 gain . .

19

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Section 951(a) inclusions
A
B
C

20

Other income (see instructions)
A
B
C

21

Section 951A(a) inclusions (see
instructions) . . . . . .

22

Reserved for future use
A
B
C

23

Reserved for future use
A
B
C

24

Total gross income (combine lines 1
through 23) . . . . . . . ▶
A
B
C
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

4

EIN

Name of corporation

Part II
Foreign Tax Credit Limitation (continued)
Section 2—Deductions
Foreign Source
Description

(a) U.S. source

25

Expenses allocable to sales income .

26

Expenses allocable to gross income
from performances of services
. .

27
28
29
30
31

Net short-term capital loss
Net long-term capital loss
Collectibles loss . . .
Net section 1231 loss .
Other losses . . . .

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(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
shareholder

(g) Total

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32

Research & experimental (R&E) expenses
. . . .
A SIC code
. . . .
B SIC code
. . . .
C SIC code
33 Allocable rental expenses—
depreciation, depletion, and amortization
34

Allocable rental expenses—other than
depreciation, depletion, and amortization

35

Allocable royalty and licensing
expenses—depreciation, depletion,
and amortization . . . . . . .

36

Allocable royalty and licensing
expenses—other than depreciation,
depletion, and amortization
. . .

37

Depreciation not included on line 33
or 35 . . . . . . . . . .

38

Charitable contributions

39

Interest expense specifically allocable
under Regulations section 1.861-10(e)

40

Other interest expense specifically
allocable under Regulations section
1.861-10T
. . . . . . . .

41
42
43

Other interest expense—business
.
Other interest expense—investment .
Other interest expense—passive activity

44

Section 59(e)(2) expenditures,
excluding R&E expenses on line 32

.

45

Foreign taxes not creditable but
deductible
. . . . . .

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Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

5

EIN

Name of corporation

Part II
Foreign Tax Credit Limitation (continued)
Section 2—Deductions (continued)
Foreign Source
Description

(a) U.S. source

46
47
48

Section 986(c) loss .
Section 987 loss . .
Section 988 loss . .

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49

Other allocable deductions (see
instructions) . . . . . .

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50

Other apportioned share of
deductions (see instructions) .

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51
52
53

Reserved for future use .
Reserved for future use .
Reserved for future use .

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54

Total deductions (combine lines 25
through 53) . . . . . . . ▶

55

Net income (loss) (subtract line 54
from line 24) . . . . . . .

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(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

(f) Sourced by
shareholder

)

(g) Total

▶

Part III
Other Information for Preparation of Form 1116 or 1118
Section 1—R&E Expenses Apportionment Factors
Foreign Source
Description

1
A
B
C
D
E
F
2
A

B

(a) U.S. source

(b) Foreign branch
category income

(c) Passive
category income

(e) Other
(category code
(country code

(d) General
category income

(f) Sourced by
shareholder

)
)

(g) Total

Gross receipts by SIC code
SIC code
SIC code
SIC code
SIC code
SIC code
SIC code
Exclusive apportionment with respect to total R&E expenses entered on Part II, line 32. Enter the following.
R&E expense with respect to activity performed in the United States
. . . . . . . . . . . . . . . . . . . . . . .
(i) SIC code

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(ii) SIC code
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(iii) SIC code
. . . . . . . . . . . . .
R&E expense with respect to activity performed outside the United States

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(i) SIC code
(ii) SIC code
(iii) SIC code

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▶

▶
▶

2A(i)
2A(ii)
2A(iii)
2B(i)
2B(ii)
2B(iii)
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

6

EIN

Name of corporation

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 2—Interest Expense Apportionment Factors
Foreign Source
Description

(a) U.S. source

1

Total average value of assets .

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2

Reserved for future use .

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3

Assets attracting directly allocable
interest expense under Regulations
section 1.861-10(e) . . . . .

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4

Other assets attracting directly
allocable interest expense under
Regulations section 1.861-10T
.

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5

Assets excluded from apportionment
formula . . . . . . . . .

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(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code
(country code

)
)

(f) Sourced by
shareholder

(g) Total

6a Total assets used for apportionment
(subtract the sum of lines 3, 4, and 5
from the sum of lines 1 and 2) . . .
b Assets attracting business interest
expense . . . . . . . .

.

c Assets attracting investment interest
expense . . . . . . . . .
d Assets attracting passive activity
interest expense . . . . . .

.

7

Basis in stock of 10%-owned
noncontrolled foreign corporations
(see attachment) . . . . . .

.

8

Basis in stock of CFCs (see attachment)
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

7

EIN

Name of corporation

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 3—Foreign Taxes
Description
1

Direct (section 901 or
903) foreign taxes:

(a) Type of tax

Paid

(b) Section 951A category income
U.S.
Foreign

U.S.

(c) Foreign branch category income
Foreign
Shareholder

Accrued

A
B
C
D
E
F
2
A
B
C
D
E
F
G
3

Reduction of taxes (total)
Taxes on foreign mineral income . . .
Reserved for future use . . . . . .
International boycott provisions . . .
Failure-to-file penalties . . . . . .
Taxes with respect to splitter arrangements
Taxes on foreign corporate distributions .
Other . . . . . . . . . . .

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Foreign tax redeterminations
A
Related tax year ▶
Date tax paid ▶
B
Related tax year ▶
Date tax paid ▶
C

4
5
6

Related tax year ▶
Date tax paid ▶
Reserved for future use .
Reserved for future use .
Reserved for future use .

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Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

8

EIN

Name of corporation

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 3—Foreign Taxes (continued)
U.S.

(d) Passive category income
Foreign

Shareholder

U.S.

(e) General category income
Foreign

Shareholder

(f) Other
(category code

)

(g) Total

1
A
B
C
D
E
F
2
A
B
C
D
E
F
G
3

A

B

C
4
5
6
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

Part IV

9

EIN

Name of corporation

Distributions From Foreign Corporations to Corporation
(a) Name of distributing foreign corporation

(b) EIN or
reference ID number

(c) Date of distribution

(d) Functional currency of
distributing foreign corporation

(e) Amount of distribution
in functional currency

(j) Qualified foreign
corporation

(k) Reserved for
future use

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
(f) Amount of E&P distribution
in functional currency

(g) Spot rate (functional
currency to U.S. dollars)

(h) Amount of distribution
in U.S. dollars

(i) Amount of E&P distribution
in U.S. dollars

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

Part V
a
b

Information on Shareholders’ Section 951(a)(1) and Section 951A Inclusions

Separate category (enter code—see instructions) . . . . . . . . . .
If U.S. source, complete as a separate Part V by separate category and check box
(b) EIN or
reference ID number

(a) Name of CFC

A
B
C
D
E
F
G
H
I
J
K
1

10

EIN

Name of corporation

Corporation total (sum for all CFCs)

(h) Tested loss

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(i) Aggregate share of
tested income

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(j) Aggregate share of
tested loss

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(d) Shareholders’ share
of CFC items through
their ownership in
the corporation
(“aggregate share”)

(c) Ending of
CFC tax year

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(k) Aggregate share of
Qualified Business Asset
Investment (QBAI)

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(e) Aggregate share of
subpart F income

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(f) Aggregate section
951(a)(1)(B) inclusion

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(g) Tested income

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(l) Aggregate share of
the tested loss
QBAI amount

(m) Aggregate share of
tested interest income

(n) Aggregate share of
tested interest expense

A
B
C
D
E
F
G
H
I
J
K
1
Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

11

EIN

Name of corporation

Part VI
Information To Complete Form 8621
Section 1—General Information on Passive Foreign Investment Company (PFIC), Qualified Electing Fund (QEF), or Qualifying Insurance Corporation (QIC)
General Information
(b) EIN or
reference ID number

(a) Name of PFIC

(c) Address of PFIC

Summary of Annual Information

(f) Description of each
class of PFIC shares

(g) Dates PFIC
shares acquired
during tax year
(if applicable)

(h) Total number of
PFIC shares held at
end of tax year

(d) Beginning of
PFIC tax year

(e) Ending of
PFIC tax year

Information Regarding Elections

(i) Total value of
PFIC shares held at
end of tax year

(k) Check if
foreign
(l) Check if
(m) Check if
corporation
(n) Check if
(j) Election
PFIC has
PFIC is also
has
PFIC meets
indicated
a controlled
by
documented
the income
corporation its eligibility to its shares are
foreign
test or asset
be
treated
as
“marketable
corporation
(enter
test of section
a qualifying
stock” within
(CFC) within
code—see
1297(a) for
insurance
the meaning of the meaning of
instructions)
the tax year.
corporation section 1296(e). section 957.
under section
1297(f)(2).

Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

12

EIN

Name of corporation

Part VI
Information To Complete Form 8621 (continued)
Section 2—Additional Information on PFIC or QEF
General Information

(a) Name of PFIC

QEF Information

(b) EIN or
reference ID number

(c) Ordinary
earnings

(d) Net capital gain

Mark-to-Market Information
(e) Fair market
value of PFIC
shares at
beginning of
tax year

(f) Fair market
value of PFIC
shares at
end of tax year

Section 1291 and Other Information
(h) Amount of cash and
fair market value of
(g) Dates PFIC
property distributed
(i) Dates of
shares
by PFIC during the
distribution
were acquired
current tax year
(if applicable)

Section 1291 and Other Information
(j) Total creditable foreign taxes
attributable to distribution
by PFIC

(k) Total distributions
from PFIC in
preceding 3
tax years

(l) Dates PFIC
shares disposed of during
tax year (if applicable)

(m) Amount realized
on disposition of
PFIC shares

(n) Tax basis of
PFIC shares on
dates of disposition

(o) Gain (loss)
on disposition of
PFIC shares

Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

Part VII

Corporation’s Interest in Foreign Corporation Income (Section 960)

B Separate category (enter code—see instructions)
If PAS was entered on line B, enter the applicable grouping under Regulations section 1.904-4(c). See instructions . . . . . . . . . . .
Check the box and attach a statement if there is more than one source country for a line. See instructions . . . . . . . . . . . . . . . .
If U.S. source, check the box and complete a separate Part VII . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If FORI or FOGEI, check the box and attach a separate Part VII . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A

13

EIN

Name of corporation

Enter EIN or reference ID number of controlled foreign corporation

C
D
E
F

Enter amounts in functional currency of the foreign corporation
(unless otherwise noted).
1 Subpart F income groups
a Dividends, interest, rents, royalties, and annuities (total)
(1) Unit
(2) Unit
b Net gain from certain property transactions (total) . .
(1) Unit

(i) Country code

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(2) Unit
c Net gain from commodities transactions (total) .
(1) Unit

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(2) Unit
d Net foreign currency gain (total)
(1) Unit

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(2) Unit
e Income equivalent to interest (total)
(1) Unit

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(2) Unit
f Foreign base company sales income (total) .
(1) Unit

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(2) Unit
g Foreign base company services income (total) .
(1) Unit

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(2) Unit
h Full inclusion foreign base company income (total)
(1) Unit
i

(2) Unit
Insurance income (total)
(1) Unit

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(2) Unit
j International boycott income (total) . . .
k Bribes, kickbacks, and other payments (total)
l Section 901(j) (total) . . . . . . . .

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(ii) Corporation’s share
of net income

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(iii) Corporation’s share of
average asset value

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▶
▶
▶

(iv) Reserved for
future use

Schedule K-2 (Form 1120-S) 2021

Schedule K-2 (Form 1120-S) 2021

Page

Part VII

14

EIN

Name of corporation

Corporation’s Interest in Foreign Corporation Income (Section 960) (continued)

Enter amounts in functional currency of the foreign corporation
(unless otherwise noted).

(i) Country code

2
3

Recaptured subpart F income .
Tested income group (total)
.

.
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.
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.
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4

(1) Unit
(2) Unit
Residual income group (total) .

.

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.

5

(1) Unit
(2) Unit
Total . .

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▶

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.

(ii) Corporation’s share
of net income

(iii) Corporation’s share of
average asset value

(iv) Reserved for
future use

Schedule K-2 (Form 1120-S) 2021