Do I need to adjust for foreign income reported on my K-1?
Any foreign source qualified dividends and/or capital gains must be adjusted, including those reported on your Schedule K-1.
The partnership or S corporation should provide details of any qualified dividends and/or long-term capital gains that have been included as foreign income. Foreign transactions are reported on Schedule K-3. The box in Box 16 of Schedule K-1 (Form 1065) or Box 14 of Schedule K-1 (Form 1120-S) will be checked if Schedule K-3 is attached to your Schedule K-1. Qualified dividends are reported in Part II, Box 8 and long-term capital gains are reported in Part II, Box 12 of Schedule K-3 as income to be sourced at the partner level or foreign income already sourced at the partnership level.
If your K-3 reports qualified dividends and/or capital gains and foreign source income, but doesn't provide the necessary detail to determine the amount of the qualified dividends and/or capital gains that are foreign source income, you should contact the partnership or S corporation for the necessary details.
The partnership or S corporation should provide details of any qualified dividends and/or long-term capital gains that have been included as foreign income. Foreign transactions are reported on Schedule K-3. The box in Box 16 of Schedule K-1 (Form 1065) or Box 14 of Schedule K-1 (Form 1120-S) will be checked if Schedule K-3 is attached to your Schedule K-1. Qualified dividends are reported in Part II, Box 8 and long-term capital gains are reported in Part II, Box 12 of Schedule K-3 as income to be sourced at the partner level or foreign income already sourced at the partnership level.
If your K-3 reports qualified dividends and/or capital gains and foreign source income, but doesn't provide the necessary detail to determine the amount of the qualified dividends and/or capital gains that are foreign source income, you should contact the partnership or S corporation for the necessary details.
