SCHEDULE K-2 

(Form 1120-S)

2021

Shareholders’ Pro Rata Share Items—International

Department of the Treasury 

Internal Revenue Service 

▶ Attach to Form 1120-S.

▶ Go to www.irs.gov/Form1120S for instructions and the latest information.

OMB No. 1545-0123

Name of corporation Employer identification number (EIN)

A Check to indicate the parts of Schedule K-2 that apply. Yes No

1 Does Part I apply? If “Yes,” complete and attach Part I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Does Part II apply? If “Yes,” complete and attach Part II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Does Part III apply? If “Yes,” complete and attach Part III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Does Part IV apply? If “Yes,” complete and attach Part IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Does Part V apply? If “Yes,” complete and attach Part V . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Does Part VI apply? If “Yes,” complete and attach Part VI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7 Does Part VII apply? If “Yes,” complete and attach Part VII . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Part I Corporation’s Other Current Year International Information

Check box(es) for additional specified attachments. See instructions.

1. Gain on personal property sale

2. Foreign oil and gas taxes

3. Splitter arrangements

4. Foreign tax translation

5. High-taxed income

6. Section 267A disallowed deduction

7. Form 8858 information

8. Form 5471 information

9. Other forms

10. Shareholder loan transactions

11. Entity treatment for certain S corporations

12. Other international items 

(attach description and statement)

Part II Foreign Tax Credit Limitation

Section 1—Gross Income

Description (a) U.S. source

Foreign Source (f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other 

(category code ) 

1 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 1120-S. Cat. No. 73973Q Schedule K-2 (Form 1120-S) 2021
Schedule K-2 (Form 1120-S) 2021 Page 2 

Part II Foreign Tax Credit Limitation (continued)

Section 1—Gross Income (continued)

Name of corporation EIN

Description (a) U.S. source

Foreign Source (f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other 

(category code ) 

5 Reserved for future use . . . . .

6 Interest income

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

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) 2021
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Name of corporation EIN

Part II Foreign Tax Credit Limitation (continued)

Section 1—Gross Income (continued)

Description (a) U.S. source

Foreign Source (f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other 

(category code ) 

15 Net section 1231 gain

A

B

C

16 Section 986(c) gain . . . . . .

17 Section 987 gain . . . . . . .

18 Section 988 gain . . . . . . .

19 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 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) 2021
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Name of corporation EIN

Part II Foreign Tax Credit Limitation (continued)

Section 2—Deductions

Description (a) U.S. source

Foreign Source (f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other 

(category code ) 

25 Expenses allocable to sales income .

26 Expenses allocable to gross income 

from performances of services . .

27 Net short-term capital loss . . . .

28 Net long-term capital loss . . . .

29 Collectibles loss . . . . . . .

30 Net section 1231 loss . . . . .

31 Other losses . . . . . . . .

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 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 Other interest expense—business .

42 Other interest expense—investment .

43 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 1120-S) 2021
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Name of corporation EIN

Part II Foreign Tax Credit Limitation (continued)

Section 2—Deductions (continued)

Description (a) U.S. source

Foreign Source (f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other 

(category code ) 

46 Section 986(c) loss . . . . . .

47 Section 987 loss . . . . . . .

48 Section 988 loss . . . . . . .

49 Other allocable deductions (see 

instructions) . . . . . . . .

50 Other apportioned share of 

deductions (see instructions) . . .

51 Reserved for future use . . . . .

52 Reserved for future use . . . . .

53 Reserved for future use . . . . .

54 Total deductions (combine lines 25 

through 53) . . . . . . . ▶

55 Net income (loss) (subtract line 54 

from line 24) . . . . . . . ▶

Part III Other Information for Preparation of Form 1116 or 1118

Section 1—R&E Expenses Apportionment Factors

Description (a) U.S. source

Foreign Source

(f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other

(category code )

(country code )

 

1 Gross receipts by SIC code

A SIC code

B SIC code

C SIC code

D SIC code

E SIC code

F SIC code

2 Exclusive apportionment with respect to total R&E expenses entered on Part II, line 32. Enter the following.

A R&E expense with respect to activity performed in the United States

(i) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2A(i)

(ii) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2A(ii)

(iii) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2A(iii)

B R&E expense with respect to activity performed outside the United States

(i) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2B(i)

(ii) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2B(ii)

(iii) SIC code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 2B(iii)

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

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

Section 2—Interest Expense Apportionment Factors

Description (a) U.S. source

Foreign Source

(f) Sourced by 

shareholder (g) Total (b) Foreign branch 

category income

(c) Passive 

category income

(d) General 

category income

(e) Other

(category code )

(country code )

 

1 Total average value of assets . . .

2 Reserved for future use . . . . .

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 . . . . . . . . .

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) 2021
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Name of corporation EIN

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

Section 3—Foreign Taxes

Description (a) Type of tax (b) Section 951A category income (c) Foreign branch category income

 U.S. Foreign U.S. Foreign Shareholder

1 Direct (section 901 or 

903) foreign taxes: Paid Accrued

A

B

C

D

E

F

2 Reduction of taxes (total)

A Taxes on foreign mineral income . . . . .

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

C International boycott provisions . . . . .

D Failure-to-file penalties . . . . . . . .

E Taxes with respect to splitter arrangements . .

F Taxes on foreign corporate distributions . . .

G Other . . . . . . . . . . . . .

3 Foreign tax redeterminations

A 

Related tax year ▶

Date tax paid ▶

B 

Related tax year ▶

Date tax paid ▶

C 

Related tax year ▶

Date tax paid ▶

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

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

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

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

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

Section 3—Foreign Taxes (continued)

(d) Passive category income (e) General category income (f) Other

(category code ) (g) Total

U.S. Foreign Shareholder U.S. Foreign Shareholder 

1

A

B

C

D

E

F

2

A

B

C

D

E

F

G

3

A

B

C

4

5

6

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

Part IV Distributions From Foreign Corporations to Corporation

(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

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

(j) Qualified foreign 

corporation

(k) Reserved for 

future use

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

Part V Information on Shareholders’ Section 951(a)(1) and Section 951A Inclusions

a Separate category (enter code—see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b If U.S. source, complete as a separate Part V by separate category and check box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

(a) Name of CFC (b) EIN or 

reference ID number

(c) Ending of 

CFC tax year

(d) Shareholders’ share 

of CFC items through 

their ownership in 

the corporation 

(“aggregate share”)

(e) Aggregate share of 

subpart F income

(f) Aggregate section 

951(a)(1)(B) inclusion (g) Tested income

A

B

C

D

E

F

G

H

I

J

K

1 Corporation total (sum for all CFCs) . . . . . . . . . . . . . . . . . . . . . ▶

(h) Tested loss (i) Aggregate share of 

tested income

(j) Aggregate share of 

tested loss

(k) Aggregate share of 

Qualified Business Asset 

Investment (QBAI)

(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 1120-S) 2021
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Name of corporation EIN

Part VI Information To Complete Form 8621

Section 1—General Information on Passive Foreign Investment Company (PFIC), Qualified Electing Fund (QEF), or Qualifying Insurance Corporation (QIC)

General Information

(a) Name of PFIC (b) EIN or 

reference ID number (c) Address of PFIC (d) Beginning of PFIC tax year

(e) Ending of 

PFIC tax year

Summary of Annual Information Information Regarding Elections

(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

(i) Total value of 

PFIC shares held at 

end of tax year

(j) Election 

by 

corporation 

(enter 

code—see 

instructions)

(k) Check if 

foreign 

corporation 

has 

documented 

its eligibility to 

be treated as 

a qualifying 

insurance 

corporation 

under section 

1297(f)(2).

(l) Check if 

PFIC has 

indicated 

its shares are 

“marketable 

stock” within 

the meaning of 

section 1296(e).

(m) Check if 

PFIC is also 

a controlled 

foreign 

corporation 

(CFC) within 

the meaning of

section 957.

(n) Check if 

PFIC meets 

the income 

test or asset 

test of section 

1297(a) for 

the tax year.

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

Part VI Information To Complete Form 8621 (continued)

Section 2—Additional Information on PFIC or QEF

General Information QEF Information Mark-to-Market Information Section 1291 and Other Information

(a) Name of PFIC (b) EIN or 

reference ID number

(c) Ordinary 

earnings (d) Net capital gain

(e) Fair market 

value of PFIC 

shares at 

beginning of 

tax year 

(f) Fair market 

value of PFIC 

shares at 

end of tax year

(g) Dates PFIC 

shares 

were acquired

(h) Amount of cash and 

fair market value 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 

attributable to distribution 

by PFIC

(k) Total distributions 

from PFIC in 

preceding 3 

tax years

(l) Dates PFIC 

shares disposed of during 

tax year (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

Schedule K-2 (Form 1120-S) 2021
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Name of corporation EIN

Part VII Corporation’s Interest in Foreign Corporation Income (Section 960)

A Enter EIN or reference ID number of controlled foreign corporation B Separate category (enter code—see instructions)

C If PAS was entered on line B, enter the applicable grouping under Regulations section 1.904-4(c). See instructions . . . . . . . . . . .

D Check the box and attach a statement if there is more than one source country for a line. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

E If U.S. source, check the box and complete a separate Part VII . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

F If FORI or FOGEI, check the box and attach a separate Part VII . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Enter amounts in functional currency of the foreign corporation 

(unless otherwise noted). (i) Country code (ii) Corporation’s share 

of net income

(iii) Corporation’s share of 

average asset value

(iv) Reserved for 

future use

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 Foreign base company sales income (total) . . . . . . . . . . .

(1) Unit

(2) Unit

g Foreign base company services income (total) . . . . . . . . . .

(1) Unit

(2) Unit

h Full inclusion foreign base company income (total) . . . . . . . .

(1) Unit

(2) Unit

i Insurance income (total) . . . . . . . . . . . . . . . .

(1) Unit

(2) Unit

j International boycott income (total) . . . . . . . . . . . . .

k Bribes, kickbacks, and other payments (total) . . . . . . . . . .

l Section 901(j) (total) . . . . . . . . . . . . . . . . . .

Schedule K-2 (Form 1120-S) 2021
Schedule K-2 (Form 1120-S) 2021 Page 14

Name of corporation EIN

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

Enter amounts in functional currency of the foreign corporation 

(unless otherwise noted). (i) Country code (ii) Corporation’s share 

of net income

(iii) Corporation’s share of 

average asset value

(iv) Reserved for 

future use

2 Recaptured subpart F income . . . . . . . . . . . . . . .

3 Tested income group (total) . . . . . . . . . . . . . . .

(1) Unit

(2) Unit

4 Residual income group (total) . . . . . . . . . . . . . . .

(1) Unit

(2) Unit

5 Total . . . . . . . . . . . . . . . . . . . . . ▶

Schedule K-2 (Form 1120-S) 2021