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Page 6 of 7 Fileid: … s/i990schr/2023/a/xml/cycle03/source 10:54 - 29-Aug-2023
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Enter the details of each related Part VI. Unrelated ($60,000/$1,300,000), wouldn't be greater
organization and each transaction type on than 5% of X's total activities, and
a separate line of the table. Transactions Organizations Taxable as a therefore X wouldn't be required to identify
of a specified type, described in lines 1b Partnership Y in Schedule R (Form 990), Part VI.
through 1s, with a particular organization In this part, provide information on any Disregard the unrelated partnerships
don't need to be reported if the total unrelated organization (an organization that meet both of the following conditions.
amount of transactions of such type during that isn't a related organization with 1. 95% or more of the filing
the tax year didn't exceed $50,000. respect to the filing organization) that organization's total revenue from the
Column (a). Name of related organiza- meets all of the following conditions. partnership for the partnership's tax year
tion. Enter the full legal name of the 1. The unrelated organization is ending with or within the organization's tax
related organization. treated as a partnership for federal tax year is described in sections 512(b)(1)–(3)
Column (b). Transaction type (a–s). purposes (S corporations are excluded). and (5), such as interest, dividends,
Enter the transaction type (lines 1a 2. The filing organization was a royalties, rents, and capital gains
through 1s). Aggregate all transactions of partner or member of the unrelated (including unrelated debt-financed
the same type with the same related partnership at any time during the filing income).
organization. organization's tax year. 2. The primary purpose of the filing
Column (c). Amount involved. The 3. The filing organization conducted organization's investment in the
amount involved in a transaction is the fair more than 5% of its activities, based on partnership is the production of income or
market value of the services, cash, and the greater of its total assets at the end of appreciation of property and not the
other assets provided by the filing its tax year or its total revenue for its tax conduct of a section 501(c)(3) charitable
organization during its tax year, or the fair year, through the unrelated partnership. activity such as program-related investing.
market value received by the filing In determining the percentage of the Enter the details of each organization
organization, whichever is higher, filing organization's activities as measured on separate lines of Part VI.
regardless of whether the transaction was by its total assets, use the amount Some of the information requested in
entered into by the parties in a prior year. reported on Form 990, Part X, line 16, this part is derived from Schedule K-1
Any reasonable method for determining column (B), as the denominator, and the (Form 1065) issued to the organization. If
such amount is acceptable. filing organization's ending capital account the Schedule K-1 isn't available, provide a
Column (d). Method of determining balance for the partnership tax year reasonable estimate of the required
amount involved. Describe the method ending with or within the filing information.
used to determine the value of the organization's tax year as the numerator
services, cash, and other assets reported (the amount reported on Schedule K-1 Column (a). Name, address, and EIN.
in column (c). (Form 1065) can be used). In determining Enter the unrelated partnership's full legal
the percentage of the filing organization's name, mailing address, and EIN.
Split-interest trusts. If the organization activities as measured by its total revenue, Column (b). Primary activity. Briefly
engaged in a type of transaction use the amount reported on Form 990, describe the primary business activity
reportable in Part V, line 2, with one or Part VIII, line 12, as the denominator, and conducted, or product or service provided,
more split-interest trusts described in the filing organization's distributive share by the unrelated partnership.
section 4947(a)(2), the organization may of the partnership's gross revenue for the
enter in column (a) the term “Charitable partnership tax year ending with or within Column (c). Legal domicile. List the
remainder trust,” “Charitable lead trust,” or the filing organization's tax year as the U.S. state (or U.S. territory) or foreign
“Pooled income fund,” as appropriate, numerator. country in which the unrelated partnership
instead of the trust's name. For instance, if is organized (the state or foreign country
the organization carried a $100,000 Example. X, a section 501(c)(3) whose law governs the unrelated
liability for a loan it received from a related organization, is a partner of Y, an partnership's internal affairs).
charitable lead trust, it should enter unrelated partnership, which conducts an
“Charitable lead trust” in column (a), activity that constitutes an unrelated Column (d). Predominant income.
transaction type “e” in column (b), and trade or business with respect to X. X's Classify the predominant type of income
“$100,000” in column (c). Multiple distributive share of Y's total income is as:
transactions of the same type with the $60,000 for Y's tax year ending with or • Related;
same type of split-interest trust may be within X's tax year. X has an ending capital • Unrelated; or
aggregated on the same line, with the account balance in Y of $120,000 as • Excluded from tax under section 512,
number of each type of trust listed in reported on Schedule K-1 (Form 1065). 513, or 514.
parentheses. For instance, if the X's total revenue and total assets for its tax In other words, enter one of the three
organization received $60,000 from one year are $1,000,000 and $1,200,000, types of income listed above that is more
related charitable remainder trust as respectively. Because X's total assets prevalent than the others. For
payment for investment services and exceed X's total revenue for its tax year, X classification purposes, use the definitions
$70,000 from another related charitable must consider total assets in determining set forth in the instructions to the
remainder trust as payment for investment whether X conducted more than 5% of its Statement of Revenue in Form 990, Part
services during the tax year, it may enter activities through Y for X's tax year. X VIII, columns (B), (C), and (D).
“Charitable remainder trusts (2)” in column conducted 10% of its activities through Y,
(a), transaction type “l” in column (b), and as measured by X's total assets Column (e). Section 501(c)(3) part-
“$130,000” in column (c). ($120,000/$1,200,000), and thus must ners. Check “Yes” if all the partners of the
identify Y in Schedule R (Form 990), Part unrelated partnership (or members of the
VI, and provide the required information. If, LLC) are section 501(c)(3) organizations
instead, X's total revenue for its tax year or governmental units (or wholly owned
was $1,300,000, then total revenue would subsidiaries of either). Otherwise, check
be considered rather than total assets; X's “No.”
activities conducted through Y, as Column (f). Share of total income.
measured by X’s total revenue Enter the dollar amount of the filing
-6- 2023 Instructions for Schedule R (Form 990)
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