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

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SCHEDULE K-2
(Form 1120-S)
Department of the Treasury
Internal Revenue Service
Name of corporation

A

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE
Shareholders’ Pro Rata Share Items—International

OMB No. 1545-0123

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

2023
Employer identification number (EIN)

Check to indicate the parts of Schedule K-2 that apply.
1
2
3
4
5
6
7

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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Yes
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Corporation’s Other Current Year International Information

3. Splitter arrangements
4. Foreign tax translation

7. Form 8858 information

8. Form 5471 information
9. Other forms

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No

1
2
3
4
5
6
7

11. Entity treatment for certain S corporations
12. Reserved for future use

10. Shareholder loan transactions

✢❏❘

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

✣❈❅❃❋

Part I

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13. Other international items
(attach description and statement)

Part II
Foreign Tax Credit Limitation
Section 1—Gross Income

Foreign Source

Description
1

Sales
A
B
C

2

(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

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) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

Page 2
EIN

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

.

.

A
B
C
7

.

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
shareholder

(g) Total

.

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

.

.

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) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

Page 3
EIN

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

Foreign Source

Description
15

(a) U.S. source

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

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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

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) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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Page 4
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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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32

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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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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

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45

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

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Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

TREASURY/IRS
AND OMB USE
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June 22, 2023
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Page 5
EIN

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 . .

49

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

50

Other apportioned share of
deductions (see instructions) .

51
52
53

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

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
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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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 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

Page 6
EIN

Part III
Other Information for Preparation of Form 1116 (continued)
Section 2—Interest Expense Apportionment Factors

Foreign Source

Description

1

(a) U.S. source

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) . . . . .

.

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
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) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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Page 7
EIN

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

Direct (section 901 or
903) foreign taxes:

Paid

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 . . . . . . . . . . .
Foreign tax redeterminations

A
Related tax year:
Date tax paid:
Contested tax

(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) Type of 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 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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Page 8
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Part III
Other Information for Preparation of Form 1116 (continued)
Section 3—Foreign Taxes (continued)
U.S.
1
A
B
C
D
E
F
2
A
B
C
D
E
F
G
3

A

(d) Passive category income
Foreign

Shareholder

U.S.

(e) General category income
Foreign

Shareholder

(f) Other
(category code

)

(g) Total

B

C
4
5
6
Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

Part IV

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

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

Page 9
EIN

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

(b) EIN or
reference ID number

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

(c) Date of distribution

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

(d) Functional currency of
distributing foreign corporation

(e) Amount of distribution
in functional currency

(j) Qualified foreign
corporation

(k) Reserved for
future use

Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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

(a) Name of CFC

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

Corporation total (sum for all CFCs)

(h) Tested loss

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

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Page 10
EIN

(b) EIN or
reference ID number

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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

.

(l) Aggregate share of
the tested loss
QBAI amount

(m) Aggregate share of
tested interest income

(n) Aggregate share of
tested interest expense

Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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Page 11
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Part VI
Information Regarding Passive Foreign Investment Companies (PFICs)
Section 1—General Information
General Information

(b) EIN or
reference ID number

(a) Name of PFIC
A
B
C
D
E
F
G
H
I
J
K
L

(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
by
indicated
a controlled
documented
the income
corporation its eligibility to its shares are
foreign
test or asset
be
treated
as
(enter
“marketable
corporation
test of section
a qualifying
code—see
stock” within
(CFC) within
1297(a) for
insurance
instructions)
the meaning of the meaning of
the tax year.
corporation section 1296(e). section 957.
under section
1297(f)(2).

A
B
C
D
E
F
G
H
I
J
K
L
Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

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Page 12
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Part VI
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

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

(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

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

(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) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

Part VII

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

Page 13
EIN

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

A

Enter EIN or reference ID number of controlled foreign corporation:

C
D
F

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

.

.

.

.

.

.

.

i

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

j

B

(i) Country code

Separate category (enter code—see instructions):

(ii) S corporation’s share of foreign (iii) Foreign corporation’s total net (iv) Foreign corporation’s current year
corporation’s net income
income (functional currency)
foreign taxes for which credit allowed
(functional currency)
(see instructions)
(U.S. dollars) (see instructions)

Unit:

(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) . . . . . . . .

.

.

.

.

.

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.
Schedule K-2 (Form 1120-S) 2023

Schedule K-2 (Form 1120-S) 2023
Name of corporation

Part VII

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

Page 14
EIN

S Corporation’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) S corporation’s share of foreign (iii) Foreign corporation’s total net (iv) Foreign corporation’s current year
corporation’s net income
income (functional currency)
foreign taxes for which credit allowed
(functional currency)
(see instructions)
(U.S. dollars) (see instructions)

Schedule K-2 (Form 1120-S) 2023