Many partnerships and S corporations are now required to complete the voluminous Schedules K-2 and K-3 to report foreign-related tax information. Updated for the 2024 tax year, this course is an essential guide for tax preparers on how to tackle the preparation of these forms. Understanding and preparing these forms requires a basic knowledge of various international tax topics, including sourcing of income, foreign tax credit income categories, effectively connected income, and fixed, determinable, annual, or periodical (FDAP). The course includes a brief discussion of key international tax concepts, a detailed walk-through of what information is required to be reported in different parts of the schedules, and practical advice from the field. The course also includes three comprehensive case studies on how the form should be completed for operating, real estate rental, and investment partnerships. Please note: Surgent also offers a companion course, “Schedules K-2 and K-3: Filing Requirements” (KFR2).
Learning Objectives
- Identify and understand what information is required to be reported on Schedules K-2 and K-3
Major Topics
- How to read and complete Parts II and III for Foreign Tax Credit
- Practical tips on how to tackle Parts IV and IX for corporate partners
- How to correctly fill out Parts X and XIII for foreign partners
- Comprehensive examples for operating, real estate rental, and investment partnerships with filled-in sample forms
