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

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SCHEDULE K-2
(Form 1065)
Department of the Treasury
Internal Revenue Service
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE
Partners’ Distributive Share Items—International

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.

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

Yes

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Employer identification number (EIN)

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

No

1
2
3
4
5
6

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 .
Does Part XII apply? If “Yes,” complete and attach Part XII

Yes
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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

2024

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

A

1
2
3
4
5
6

OMB No. 1545-0123

13. Other international items
(attach description and statement)

Part II
Foreign Tax Credit Limitation
Section 1—Gross Income

Foreign Source

Description
1

Sales

(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
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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 2
EIN

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

.

.

A
B
C
7

.

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
partner

(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 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO
NOT
FILE
June 7, 2024

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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.

Reserved for future use
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

.
.
.

(b) Foreign branch
category income

(c) Passive
category income

(d) General
category income

(e) Other
(category code

)

(f) Sourced by
partner

(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 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 4
EIN

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
partner

(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

.

45

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

.

.

.

.

.

.

Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

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
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 expenses with respect to activity performed in the United States
. . . . . . . . . . . . . . . . . . . . . . .
(i) SIC code:

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(ii) SIC code:
. . . . . . . . . . . . . .
(iii) SIC code:
. . . . . . . . . . . . . .
R&E expenses 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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 6
EIN

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). .

.
.

.
.

3

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

.

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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 7
EIN

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:

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

Partner

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

.
.
.
Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 8
EIN

Part III
Other Information for Preparation of Form 1116 or 1118 (continued)
Section 4—Foreign Taxes (continued)
U.S.
1
A
B
C
D
E
F
2
A
B
C
D
E
F
G
3
A
B
C
4
5
6

(d) Passive category income
Foreign

Partner

U.S.

(e) General category income
Foreign

Partner

(f) Other
(category code

)

(g) Total

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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 9
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
Reserved for future use . . . . . . . . .
Controlled foreign corporation (CFC) dividends . .

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2c
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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

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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8

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

12

(b) FDDEI

(c) Total

.
.
.

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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

Part V

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Distributions From Foreign Corporations to Partnership
(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 10
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 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

Part VI
a
b

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

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 .

(a) Name of CFC

A
B
C
D
E
F
G
H
I
J
K
1 Partnership total (sum for all CFCs) .

(
(
(
(
(
(
(
(
(
(
(
(

(b) EIN or
reference ID number

.

.

.

.

.

(i) Aggregate share of
tested income

(h) Tested loss

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

Page 11
EIN

)
)
)
)
)
)
)
)
)
)
)
)

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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

(k) Aggregate share
of QBAI

)
)
)
)
)
)
)
)
)
)
)
)

.
.

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

(c) Ending of CFC
tax year

(j) Aggregate share of
tested loss

(
(
(
(
(
(
(
(
(
(
(
(

.
.

(m) Aggregate share of
tested interest income

(n) Aggregate share of
tested interest expense

)
)
)
)
)
)
)
)
)
)
)
)

Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 12
EIN

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
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
corporation
(n) Check if
(j) Election
PFIC has
has
(m) Check if
PFIC meets
by
indicated
documented
PFIC is also
the income
partnership its eligibility to its shares are
a CFC within
test or asset
be
treated
as
(enter
“marketable
the meaning of test of section
a qualifying
code—see
stock” within
section 957.
1297(a) for
insurance
instructions)
the meaning of
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) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 13
EIN

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

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
(h) Amount of cash and
FMV of property
(g) Dates PFIC
distributed
(i) Dates of
shares were
by PFIC during the
distribution
acquired
current tax year
(if applicable)

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 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

Part VIII

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 14
EIN

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

Enter EIN or reference ID number of CFC:

A

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:
(ii) Partnership’s share of foreign (iii) Foreign corporation’s total (iv) Foreign corporation’s current
Enter amounts in functional currency of the foreign corporation
year foreign taxes for which
(i) Country code
corporation’s net income
net income (functional currency)
credit allowed (U.S. dollars)
(unless otherwise noted).
(functional currency)
(see instructions)
(see instructions)

C
D
F

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:

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

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

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

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i

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

j

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

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

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Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

Part VIII

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 15
EIN

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 . .

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.

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

(i) Country code

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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

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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(a) Total

(b) Total ECI gross
receipts

(c) Total non-ECI gross
receipts

(a) Total

(b) Total base erosion
payments

(c) Total base erosion
tax benefits

.
.
.
.

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

6
7
8
9
10a
b
11
12

Reserved for future use . . . . . . . . . . . . . . . . .
Cost sharing transaction payments . . . . . . . . . . . . . .
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, 881, or 884(f), with respect to which tax has been withheld under section 1441 or 1442 at the
30% statutory withholding tax rate or subject to tax under Regulations section 1.884-4(a)(2)(ii) at the 30%
statutory rate (see instructions) . . . . . . . . . . . . . . . . . . . . . . .

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Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 16
EIN

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 or subject to a reduced rate of tax under Regulations
section 1.884-4(a)(2)(ii). Multiply the amount of the base erosion tax benefit by a fraction equal to the rate
of tax imposed under the treaty over the 30% (0.30) statutory rate. See instructions . . . . . . .

19
20
21

Total base erosion tax benefits (subtract the sum of lines 17 and 18 from the sum of lines 7 through 16) .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .

22

Reserved for future use .

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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 not included on lines 1
through 19 . . . . . . . .

21

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

.

(b) Partner
determination

ECI

(c) U.S. source

(d) Foreign source

(e) U.S. source
(FDAP)

Non-ECI

(f) U.S. source
(other)

(g) Foreign source

.
Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 17
EIN

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
19
20
21
22
23
24

Charitable contributions
. .
Other:
Other:
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)) . . . .

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.
.

(b) Partner
determination

ECI

(c) U.S. source

(d) Foreign source

(e) U.S. source
(FDAP)

Non-ECI

(f) U.S. source
(other)

(g) Foreign source

(2)

Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 18
EIN

Part X
Foreign Partners’ Character and Source of Income and Deductions (continued)
Section 3—Allocation and Apportionment Methods for Deductions
1
a
b

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

6

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Reserved for future use
(i)

.
.

(ii)

(iii)

a

b

2
a
b

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

.

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Worldwide assets .

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7

Other allocation and apportionment key
(i) Key/Factor

(ii) Allocation

a

3
a
b
4
a
b
5

Liabilities
U.S.-booked liabilities of partnership . .
Directly allocated partnership indebtedness
Personnel
Personnel of U.S. trade or business
Worldwide personnel . . . . .

b

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8

b

(ii) Allocation

a

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.

b

.
.

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

Other allocation and apportionment key
(i) Key/Factor

(iii) Worldwide

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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Schedule K-2 (Form 1065) 2024

Schedule K-2 (Form 1065) 2024
Name of partnership

Part XI
1
2
3

TREASURY/IRS
AND OMB USE
ONLY DRAFT
June 18, 2024
DO NOT FILE

Page 19
EIN

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.
(a) Beginning of allocation period

(c) Dividends
(enter four decimal places)

(b) End of allocation period

(d) Dividend equivalents
(enter four decimal places)

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Part XII
Name of QDD

(e) Total
(enter four decimal places)

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Section 871(m) Tax Liability of a Qualified Derivatives Dealer (QDD)

Schedule

of

Indicate the year or portion of the year to which the schedule relates. (Enter month, day, and year for beginning and ending dates.)
Beginning

, 20

, and ending

, 20

Summary of QDD Tax Liability

(a) Gross amount

1
2
3
4

Total section 871(m) amount
. . . . . . . . . . . . . . . . . . .
Total dividends received in equity derivatives dealer capacity . . . . . . . . . .
Total QDD tax liability pursuant to section 3.09(A) of the Qualified Intermediary Agreement (QIA)
Total QDD tax liability pursuant to section 3.09(B) of the QIA . . . . . . . .

5

Total QDD tax liability pursuant to section 3.09(C) of the QIA
Income type:
Income type:
Income type:
Income type:
Income type:
Income type:
Income type:
Total of line 5 amounts . . . . . . . . . . .

a
b
c
d
e
f
g
6

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(b) Withholding tax rate

(c) Amount of tax liability
(column (a) x column (b))

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Schedule K-2 (Form 1065) 2024