1065 Schedule K-2 Partners' Distributive Share Items - International

Partners’ Distributive Share Items—International

SCHEDULE K-2
(Form 1065)

OMB No. 1545-0123

2023

Attach to Form 1065.
Go to www.irs.gov/Form1065 for instructions and the latest information.

Department of the Treasury
Internal Revenue Service

Employer identification number (EIN)

Name of partnership

A

Is the partnership a withholding foreign partnership?
If “Yes,” enter your WP-EIN:
Yes
No

C

Check to indicate the parts of Schedule K-2 that apply.
1
2
3
4
5
6

B

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

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No

1
2
3
4
5
6

Yes
7
8
9
10
11
12

Does Part VII apply? If “Yes,” complete and attach Part VII
Does Part VIII apply? If “Yes,” complete and attach Part VIII
Does Part IX apply? If “Yes,” complete and attach Part IX .
Does Part X apply? If “Yes,” complete and attach Part X .
Does Part XI apply? If “Yes,” complete and attach Part XI .
Reserved for future use . . . . . . . . . . .

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Partnership’s Other Current Year International Information

Check box(es) for additional specified attachments. See instructions.
1. Gain on personal property sale
5. High-taxed income
2. Foreign oil and gas taxes
6. Section 267A disallowed deduction
7. Reserved for future use

No

7
8
9
10
11
12

11. Dual consolidated loss
12. Reserved for future use

10. Partner loan transactions

✢❏❘

3. Splitter arrangements
4. Foreign tax translation

8. Form 5471 information
9. Other forms
✣❈❅❃❋

Part I

Yes
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Is the partnership (including the home office or any branch) a qualified derivatives dealer?
If “Yes,” enter your QI-EIN:
Yes
No

13. Other international items
(attach description and statement)

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
partner

(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 1065.

Cat. No. 73927C

Schedule K-2 (Form 1065) 2023

Page 2

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

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

Guaranteed payments .

6

Interest income

(a) U.S. source
.

.

.

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
partner

(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 1065) 2023

Page 3

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

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
partner

(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

Reserved for future use
A
B
C

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 1065) 2023

Page 4

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

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 performance 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
partner

(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 line 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 1065) 2023

Page 5

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

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
partner

)

(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
partner

)
)

(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
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(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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2A(i)
2A(ii)
2A(iii)

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

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2B(i)
2B(ii)
2B(iii)

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Schedule K-2 (Form 1065) 2023

Page 6

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

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 .

2

Sections 734(b) and 743(b)
adjustment to assets—average value .

3

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

.

4

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

.

5

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

.

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code
(country code

)
)

(f) Sourced by
partner

(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)

Section 3—Foreign-Derived Intangible Income (FDII) Deduction Apportionment Factors
Foreign Source
Description

(a) U.S. source

1
2

Foreign-derived gross receipts
Cost of goods sold (COGS). .

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3

Partnership deductions allocable to foreignderived gross receipts . . . . . . .

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4

Other partnership deductions apportioned to
foreign-derived gross receipts . . . . .

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(b) Passive
category income

(c) General
category income

(d) Other
(category code
(country code

)
)

(e) Sourced by
partner

(f) Total

Schedule K-2 (Form 1065) 2023

Page 7

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 4—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

Partner

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:
Contested tax

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B
Related tax year:
Date tax paid:
Contested tax
C
Related tax year:
Date tax paid:
4
5
6

Contested tax
. .
Reserved for future use
Reserved for future use
Reserved for future use

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Schedule K-2 (Form 1065) 2023

Page 8

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 4—Foreign Taxes (continued)
U.S.

(d) Passive category income
Foreign

Partner

U.S.

(e) General category income
Foreign

Partner

(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

Section 5—Other Tax Information
Foreign Source
Description

1

Section 743(b)
positive income
adjustment .

2

Section 743(b)
negative income
adjustment .

3

Reserved for
future use . .

4

Reserved for
future use . .

(a) U.S. source

(b) Section 951A
category income

(c) Foreign branch
category income

(d) Passive
category income

(e) General
category income

(f) Other
(category code
(country code

)
)

(g) Sourced by
partner

(h) Total

Schedule K-2 (Form 1065) 2023

Page 9

Schedule K-2 (Form 1065) 2023
Name of partnership

EIN

Part IV
Information on Partners’ Section 250 Deduction With Respect to Foreign-Derived Intangible Income (FDII)
Section 1—Information To Determine Deduction Eligible Income (DEI) and Qualified Business Asset Investment (QBAI) on Form 8993
1 Net income (loss)
2a DEI gross receipts
b DEI COGS
. .
3
4

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1
2a
2b

c DEI properly allocated and apportioned deductions
Section 951(a) inclusions . . . . . . . .
Controlled foreign corporation (CFC) dividends . .

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2c
3
4

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5
6
7

5
6
7
8

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Financial services income . . . .
Domestic oil and gas extraction income
Foreign branch income . . . . .
Partnership QBAI
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Section 2—Information To Determine Foreign-Derived Deduction Eligible Income (FDDEI) on Form 8993 (see instructions)
Description
9
10
11

Gross receipts . .
COGS . . . . .
Allocable deductions

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12

Other apportioned deductions .

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(a) Foreign-derived
income from all sales of
general property

(b) Foreign-derived
(c) Foreign-derived
income from all sales of
income from all services
intangible property

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Section 3—Other Information for Preparation of Form 8993
(a) DEI

13
A
B
C

Description
Interest deductions
Interest expense specifically allocable under Regulations section 1.861-10(e) . .
Other interest expense specifically allocable under Regulations section 1.861-10T
Other interest expense . . . . . . . . . . . . . . . . . .

14
A
B
C
D
E
F

Interest expense apportionment factors
Total average value of assets . . . . . . . . . . . . . . . . . . . . . . . . . .
Sections 734(b) and 743(b) adjustment to assets—average value
. . . . . . . . . . . . . . .
Assets attracting directly allocable interest expense under Regulations section 1.861-10(e) . . . . . . . .
Other assets attracting directly allocable interest expense under Regulations section 1.861-10T . . . . . .
Assets excluded from apportionment formula . . . . . . . . . . . . . . . . . . . . .
Total assets used for apportionment (the sum of lines 14C, 14D, and 14E subtracted from the sum of lines 14A and 14B)

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(d) Total
(add columns (a)
through (c))

12

(b) FDDEI

(c) Total

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R&E expenses apportionment factors
15

Gross receipts by SIC code
.
A SIC code:
B SIC code:
.
.
C SIC code:

16
A

R&E expenses by SIC code
SIC code:
.

B SIC code:
C SIC code:

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16A
16B
16C
Schedule K-2 (Form 1065) 2023

Page 10

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part V

Distributions From Foreign Corporations to Partnership
(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 1065) 2023

Page 11

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part VI
a
b

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

Separate category (enter code—see instructions) . . . . . . . . . . .
If U.S. source, complete as a separate Part VI 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 Partnership total (sum for all CFCs) .

(h) Tested loss

.

.

.

.

(i) Aggregate share of
tested income

.

.

.

.

.
.

.
.

.

.

.

(j) Aggregate share of
tested loss

.

.

.
.

.
.

.
.

.
.

.
.

.
.

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

(c) Ending of CFC
tax year

.

.
.

.

.

.

.

.

.

(k) Aggregate share
of QBAI

.

.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

(e) Aggregate share of
subpart F income

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.

.

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

.

.

.

.

.

.

(g) Tested income

.
(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 1065) 2023

Page 12

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part VII
Information Regarding Passive Foreign Investment Companies (PFICs)
Section 1—General Information
General Information
(b) EIN or
reference ID number

(a) Name of PFIC

(c) Address of PFIC

(d) Beginning of
PFIC tax year

(e) Ending of
PFIC tax year

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

Information Regarding Elections

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

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

A
B
C
D
E
F
G
H
I
J
K
L
Schedule K-2 (Form 1065) 2023

Page 13

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part VII
Information Regarding Passive Foreign Investment Companies (PFICs) (continued)
Section 2—Additional Information on PFIC or Qualified Electing Fund (QEF)
General Information

(a) Name of PFIC

(b) EIN or
reference ID number

QEF Information

(c) Ordinary
earnings

(d) Net capital
gain

Section 1296 Mark-to-Market Information
(e) Fair market
value (FMV) of PFIC
shares at
beginning of
tax year

(f) FMV of PFIC
shares at
end of
tax year

Section 1291 and Other Information
(g) Dates PFIC
shares were
acquired

(h) Amount of cash and
FMV of property
distributed
by PFIC during the
current tax year
(if applicable)

(i) Dates of
distribution

A
B
C
D
E
F
G
H
I
J
K
L
Section 1291 and Other Information
(j) Total creditable foreign taxes
(l) Dates PFIC shares disposed
(k) Total distributions from
attributable to distribution
of during tax year
PFIC in preceding 3 tax years
by PFIC
(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

A
B
C
D
E
F
G
H
I
J
K
L
Schedule K-2 (Form 1065) 2023

Page 14

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part VIII

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

Enter EIN or reference ID number of CFC:

A
C

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 VIII
E
If foreign oil related income or foreign oil and gas extraction income, check the box and attach a separate Part VIII
G Enter functional currency of foreign corporation:

D
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:

.

.

.

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

.

.

.

.

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

.

.

.

.

.

.

.

.

.

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

.

.

.

.

.

.

.

.

(2) Unit:
f Other foreign personal holding company income (total)
(1) Unit:

.

.

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

.

.

.

.

.

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

.

.

.

.

.

.

.

i

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

j

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

.

.

.

.

.

.

.

.

.

.

.

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

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

(i) Country code

(ii) Partnership’s share of foreign
corporation’s net income
(functional currency)

(iii) Foreign corporation’s total
net income (functional currency)
(see instructions)

(iv) Foreign corporation’s current year
foreign taxes for which credit allowed
(U.S. dollars) (see instructions)

Schedule K-2 (Form 1065) 2023

Page 15

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part VIII

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

Enter amounts in functional currency of the foreign corporation
(unless otherwise noted).
2
3

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

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

4

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

.

.

.

.

.

.

.

.

.

5

(1) Unit:
(2) Unit:
Total . .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

(i) Country code

(ii) Partnership’s share of foreign
corporation’s net income
(functional currency)

(iii) Foreign corporation’s total
net income (functional currency)
(see instructions)

(iv) Foreign corporation’s current year
foreign taxes for which credit allowed
(U.S. dollars) (see instructions)

Part IX
Partners’ Information for Base Erosion and Anti-Abuse Tax (Section 59A)
Section 1—Applicable Taxpayer (see instructions for more information and definition of terms)
Description

(a) Total

1
2
3
4

Gross receipts for section 59A(e) . . . .
Gross receipts for the first preceding year . .
Gross receipts for the second preceding year
Gross receipts for the third preceding year .

5

Amounts included in the denominator of the base erosion percentage as described in Regulations section
1.59A-2(e)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.
.
.
.

.
.
.
.

.
.
.
.

.
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.
.
.
.

.
.
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.

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.

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.

.
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.

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.

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.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

(b) Total ECI gross receipts (c) Total non-ECI gross receipts

.
.
.
.

Section 2—Base Erosion Payments and Base Erosion Tax Benefits (see instructions)
Description

(a) Total

6
7
8
9
10a
b
11
12

Reserved for future use . . . . . . . . . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . . . . .
Purchase or creations of property rights for intangibles (patents, trademarks, etc.)
Rents, royalties, and license fees . . . . . . . . . . . . . .
Compensation/consideration paid for services not excepted by section 59A(d)(5)
Compensation/consideration paid for services excepted by section 59A(d)(5) .
Interest expense . . . . . . . . . . . . . . . . . . .
Payments for the purchase of tangible personal property . . . . . . .

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

13

Premiums and/or other considerations paid or accrued for insurance and reinsurance as covered by
sections 59A(d)(3) and 59A(c)(2)(A)(iii) . . . . . . . . . . . . . . . . . . .

.

.

14a
b
15
16

Nonqualified derivative payments . . . . . . . . . . . .
Qualified derivative payments excepted by section 59A(h) . . . . .
Payments reducing gross receipts made to surrogate foreign corporation
Other payments—specify:

.
.
.

.
.
.

17

Base erosion tax benefits related to payments reported on lines 6 through 16, on which tax is imposed by
section 871 or 881, with respect to which tax has been withheld under section 1441 or 1442 at the 30% (0.30)
statutory withholding tax rate
. . . . . . . . . . . . . . . . . . . . . . .

.
.
.

.
.
.

.
.
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.

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.
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.

.
.
.
.
.
.
.
.

.
.
.

.
.
.

(b) Total base erosion
payments

(c) Total base erosion tax
benefits

Schedule K-2 (Form 1065) 2023

Page 16

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part IX
Partners’ Information for Base Erosion and Anti-Abuse Tax (Section 59A) (continued)
Section 2—Base Erosion Payments and Base Erosion Tax Benefits (see instructions) (continued)
Description

(a) Total

18

Portion of base erosion tax benefits reported on lines 6 through 16, on which tax is imposed by section
871 or 881, with respect to which tax has been withheld under section 1441 or 1442 at reduced
withholding rate pursuant to income tax treaty. Multiply ratio of percentage withheld divided by 30% (0.30)
times tax benefit. See instructions . . . . . . . . . . . . . . . . . . . . . .

19
20
21

Total base erosion tax benefits (subtract the sum of lines 17 and 18 from the sum of lines 8 through 16) .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .

22

Reserved for future use .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Part X
Foreign Partners’ Character and Source of Income and Deductions
Section 1—Gross Income

.

.

(b) Total base erosion
payments

(c) Total base erosion
tax benefits

.

Partnership Determination
Description

(a) Total

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Ordinary business income (gross) . .
Gross rental real estate income . .
Other gross rental income . . . .
Guaranteed payments for services .
Guaranteed payments for use of capital
Interest income . . . . . . .
Dividends . . . . . . . . .
Dividend equivalents
. . . . .
Royalties and license fees . . . .
Net short-term capital gain . . . .
Net long-term capital gain . . . .
Collectibles (28%) gain . . . . .
Unrecaptured section 1250 gain . .
Net section 1231 gain . . . . .
Reserved for future use . . . . .
Reserved for future use . . . . .
Reserved for future use . . . . .
Reserved for future use . . . . .
Reserved for future use . . . . .

20

Other income (loss) not included on
lines 1 through 19 . . . . . .

21

Gross income (sum of lines 1
through 20) . . . . . .

.

(b) Partner
determination

Non-ECI

ECI
(c) U.S. source

(d) Foreign source

(e) U.S. source
(FDAP)

(f) U.S. source
(other)

(g) Foreign source

.
Schedule K-2 (Form 1065) 2023

Page 17

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part X
Foreign Partners’ Character and Source of Income and Deductions (continued)
Section 2—Deductions, Losses, and Net Income
Partnership Determination
Description

(a) Total

1

Expenses related to ordinary business
income (gross) . . . . . . .

2
3
4
5
6

R&E expenses . . . . . .
Expenses from rental real estate .
Expenses from other rental activities
Royalty and licensing expenses .
Section 179 deduction . . . .

.
.
.
.
.

7

Interest expense on U.S.-booked
liabilities . . . . . . . .

.

8

Interest expense directly allocable
under Regulations sections
1.882-5(a)(1)(ii)(B) and 1.861-10T .

.

9
10
11
12
13
14
15

Other interest expense . .
Section 59(e)(2) expenditures
Net short-term capital loss .
Net long-term capital loss .
Collectibles loss . . . .
Net section 1231 loss . .
Other losses
(1)

16
17
18

Charitable contributions
Other:
Other:

19
20
21
22
23
24

Reserved for future use . . .
Reserved for future use . . .
Reserved for future use . . .
Reserved for future use . . .
Reserved for future use . . .
Total (sum of lines 1 through 23)

25

Net income (loss) (line 21 (Section 1)
minus line 24 (Section 2)) . . . .

.
.
.
.
.
.

.
.
.
.
.
.

.
.
.
.
.
.

.

.

.

.
.
.
.
.
.

.
.
.
.
.
.

(b) Partner
determination

ECI
(c) U.S. source

Non-ECI
(d) Foreign source

(e) U.S. source
(FDAP)

(f) U.S. source
(other)

(g) Foreign source

(2)
.

Schedule K-2 (Form 1065) 2023

Page 18

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part X
Foreign Partners’ Character and Source of Income and Deductions (continued)
Section 3—Allocation and Apportionment Methods for Deductions
6

1
a
b

Gross income
Gross ECI . . . . .
Worldwide gross income .

2
a
b

Assets
Average U.S. assets (inside basis) .

.

.

.

.

.

.

Worldwide assets .

.

.

.

.

.

.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

.
.

Reserved for future use
(i)

(ii)

(iii)

a
b

.

.

.

.

.

7

Other allocation and apportionment key
(i) Key/Factor

(ii) Allocation

a
b

3
a
b

Liabilities
U.S.-booked liabilities of partnership . .
Directly allocated partnership indebtedness

4
a
b

Personnel
Personnel of U.S. trade or business
Worldwide personnel . . . . .

5

Gross receipts from sales or services by SIC code
(i) SIC code
(ii) ECI

.
.

.
.

.
.

.
.

8

Other allocation and apportionment key
(i) Key/Factor

(ii) Allocation

a
.
.

.
.

.
.

.
.

.
.

b

.
.

(iii) Worldwide

a
b

Section 4—Reserved for Future Use
Reserved
1
2
3
4
5
6
7
8
9
10

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

.
.
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.

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.

.
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.
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.
.
.
.
.
.

(a) Reserved
.
.
.
.
.
.
.
.
.
.

.
.
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.
.

.
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.

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.
.
.
.
.
.

(b) Reserved

(c) Reserved

.
.
.
.
.
.
.
.
.
.
Schedule K-2 (Form 1065) 2023

Page 19

Schedule K-2 (Form 1065) 2023
EIN

Name of partnership

Part XI
1
2
3

Section 871(m) Covered Partnerships

Check the box if you are a publicly traded partnership as defined in section 7704(b) and you (a) are a covered partnership as defined in Regulations section 1.871-15(m)(1), or (b) directly or
indirectly hold an interest in a lower-tier partnership that is a covered partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Specify the number of units of the partnership issued and outstanding:
For each allocation period, provide the following information for the number of units specified on line 2.
(i) Beginning of allocation period

(ii) End of allocation period

(iii) Dividends
(enter four decimal places)

.
.
.
.

Part XII

(iv) Dividend equivalents
(enter four decimal places)

.
.
.
.

(v) Total
(enter four decimal places)

.
.
.
.

Reserved for Future Use
Schedule K-2 (Form 1065) 2023