@Mike9241, @Anonymous_. First of all, thanks for responding!
To clarify a minor issue:
The Swiss Dividend has absolutely nothing to do with the K-3 of that "AB" shareholding I mentioned earlier. These dividends came from another holding and because of this "foreign activity" (other than the activity on the K1 & K3), it is my understanding that my partnership does not qualify for an additional transition relief
"The IRS intends to provide certain additional transition relief for this year from the Schedule K-2 and K-3 reporting for certain domestic partnerships and S corporations with ***no foreign activities***, foreign partners, or shareholders, and without knowledge of partner or shareholder need for information on items of international relevance. For 2021, these qualifying domestic partnerships and S corporations will not have to file the new schedules."
It is my understanding that my domestic partnership with domestic partners would NOT qualify, given that on top of that K3, the partnership also received other foreign income in the form of dividend from that Swiss company.
Now back to the K-3 Schedule. From what I understood, the K-3 information flows into Form 1116 or 1118. Furthermore, I do see that data from Part IV of K-3 flows onto Form 8993, am I missing any other Forms that K-3 may flow to?
"personally, if the amount is small I wouldn't file the 1116 form for AB and of course uncheck box 16."
Dividends received from that AB holdings that provided K-1 and K-3 were:
$16, interest $1, net short-term cap gains: -$2 ; Ordinary business income: $100. The amounts are miniscule.
But when we go to K-3 form, under the Section:
OTHER INFORMATION TO BE REPORTED ON THE SCHEDULE K-3
2021 SUPPLEMENTAL SCHEDULE
Name of country or U.S. possession VARIOUS
Gross income from all sources $234
Gross income sourced at partner level $238
FGI Section 951A Category $0
FGI Passive Category $0
FGI General Category $0
Partner Deductions: Interest Expense $5
Partner Deductions: Other $0
Deductions: Passive Category $0
Deductions: General Category $0
Gross receipts per Regulations 1.59A-7(e)(2) - current year $8
--
Would you still uncheck box 16 and file with just K-1, given that foreign dividends from another holdings were received by the filing entity?
Thank you,
-B
