Schedules K-2 & K-3 were introduced during the 2021 tax year. The Schedules should be filed with a Partnership (Form 1065) and S corporation (Form 1120-S) to report the source & character of income allocated to each owner. The detailed information reported on Schedule K-3 is often needed by both U.S. and non-U.S. taxpayers to accurately file their tax returns. This video series (Tutorial 2 Playlist) covers a simple example where a U.S. LLC partnership operates as a holding company for a domestic LLC & foreign subsidiary. The LLC has two members (Jane a non-U.S. person & John a U.S. citizen). The LLC operates two wholly-owned subsidiaries, one of which is based in the U.S., while the second subsidiary is in Switzerland. Both subsidiaries are treated as disregarded entities for federal tax purposes. For other K-2 & K-3 tutorials covering different fact patterns, please see the following playlists and videos below. Tutorial 1: U.S. Partnership LLC with Foreign DRE & No ECI 1. Intro & Fact Pattern: https://youtu.be/WiV3mLQW8gY 2. Form 1065 Pages 1 to 5: https://youtu.be/SJVCH7OKgVw 3. Schedule K-2: https://youtu.be/pofgj-okKSU 4. Schedule K-3: https://youtu.be/gDUPXzBOA_0 Tutorial 2: U.S. Partnership LLC with Foreign DRE and U.S. ECI 1. Intro & Fact Pattern: https://youtu.be/2BjHFbvJw9o 2. Form 1065 Pages 1 to 5: https://youtu.be/mwlTIdYvK68 3. Schedule K-2: https://youtu.be/rl5zpR5xljY 4. Schedule K-3: https://youtu.be/QIbXz2P2J6E Tutorial 3: U.S. Investment Fund LP with U.S. FDAP Income 1. Intro & Fact Pattern: https://youtu.be/bfa2Krn0RgA 2. Form 1065 Pages 1 to 5: https://youtu.be/361Kd84z9wE 3. Schedule K-2: https://youtu.be/rT6kdp9fAyo 4. Schedule K-3: https://youtu.be/2BQub2adjrI Jason’s Page: https://jasondknott.com/ Knott PLLC: https://www.knottpllc.com/ Need more help? Schedule a Consultation: https://jasondknott.com/Consultation ✅ TAX & ACCOUNTING TRAINING GUIDES Udemy - https://jasondknott.com/Udemy Gumroad - https://jasondknott.com/Gumroad ✅ AFFILIATE LINKS File Taxes with TurboTax - https://jasondknott.com/TurboTax File Taxes with TaxSlayer - https://jasondknott.com/TaxSlayer ✅ FOLLOW JASON HERE: Patreon: https://www.patreon.com/jasonknott Twitter: https://twitter.com/jasondknott Instagram: https://www.instagram.com/jasondknott TikTok: https://www.tiktok.com/@jasondknott LinkedIn: https://www.linkedin.com/in/jason-d-knott/ Quora: https://www.quora.com/profile/Jason-Knott-17 DISCLAIMER: I am a licensed attorney and certified public accountant (CPA) in the State of Florida. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of an attorney-client relationship, and no communication is intended to constitute legal advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal or accounting strategies demonstrated in this video. This description includes links to affiliates. I may earn a commission or referral bonus if you use these links to purchase products or services from the providers. Thank you. #ScheduleK2 #ScheduleK3 #Form1065 #Form1116 #Form1118 ... https://www.youtube.com/watch?v=2BjHFbvJw9o

Form 1041 is generally required for domestic trusts that have gross income of $600 or more during the year. In this example, we have an initial trust return for a Florida irrevocable nongrantor trust. The trust was formed by a father who named his son as the sole beneficiary. The trustee is required to distribute a fixed amount per month and has the discretionary authority to make additional distributions to the extent the trust has net income. Before a trust begins filing Form 1041, it is necessary for the trust to compute its Trust Accounting Income (TAI) in accordance with the trust agreement and under state & local laws. Trusts must accurately track their Trust Accounting Income, Federal taxable income, and Distributable Net Income (DNI). If a trust beneficiary receives a distribution of cash or property during the year, the allocation of income to the beneficiary is reported on Schedule K-1. For some other videos on trust tax issues: Grantor vs. NonGrantor Taxes: https://youtu.be/omKYkb0ph6w Entity Classification Election for Trusts: https://youtu.be/xs8VrsQxASY LLC vs. Trusts: https://youtu.be/JjqjxufJUr8 Statutory Foundations vs. Trusts: https://youtu.be/K1ZUibF20Wc Section 663(b) Elections: https://youtu.be/otds3mcF1ro For additional Form 1041 tutorials, see the following playlist: https://youtube.com/playlist?list=PLTdpzKOWNutR6doDlhzx3blcqx2a1pD_G Jason’s Page: https://jasondknott.com/ Knott PLLC: https://www.knottpllc.com/ Need more help? Schedule a Consultation: https://jasondknott.com/Consultation ✅ TAX & ACCOUNTING TRAINING GUIDES Udemy - https://jasondknott.com/Udemy Gumroad - https://jasondknott.com/Gumroad ✅ FOLLOW JASON HERE: Patreon: https://www.patreon.com/jasonknott Twitter: https://twitter.com/jasondknott Instagram: https://www.instagram.com/jasondknott TikTok: https://www.tiktok.com/@jasondknott LinkedIn: https://www.linkedin.com/in/jason-d-knott/ Quora: https://www.quora.com/profile/Jason-Knott-17 DISCLAIMER: I am a licensed attorney and certified public accountant (CPA) in the State of Florida. I am not a financial advisor. The information provided in this video is for entertainment purposes only. No such communication is provided in the course of an attorney-client relationship, and no communication is intended to constitute legal advice. You should speak with your own tax and legal professionals to discuss your circumstances before performing any of the tax, legal or accounting strategies demonstrated in this video. This description includes links to affiliates. I may earn a commission or referral bonus if you use these links to purchase products or services from the providers. Thank you. #Form1041 #1041 #TrustTaxes #IRS ... https://www.youtube.com/watch?v=-9U1gYOzzPg