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Page 6 of 7 Fileid: … s/i990schr/2022/a/xml/cycle03/source 12:17 - 22-Aug-2022
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
filing organization and a particular related Part VI. Unrelated ($60,000/$1,300,000), wouldn't be greater
tax-exempt organization exceed $50,000. than 5% of X's total activities, and
Organizations Taxable as
Enter the details of each related therefore X wouldn't be required to identify
organization and each transaction type on a Partnership Y in Schedule R (Form 990), Part VI.
a separate line of the table. Transactions In this part, provide information on any Disregard the unrelated partnerships
of a specified type, described in lines 1b unrelated organization (an organization that meet both of the following conditions.
through 1s, with a particular organization that isn't a related organization with 1. 95% or more of the filing
don't need to be reported if the total respect to the filing organization) that organization's total revenue from the
amount of transactions of such type during meets all of the following conditions. partnership for the partnership's tax year
the tax year didn't exceed $50,000. 1. The unrelated organization is ending with or within the organization's tax
Column (a). Name of related organiza- treated as a partnership for federal tax year is described in sections 512(b)(1)–(3)
tion. Enter the full legal name of the purposes (S corporations are excluded). and (5), such as interest, dividends,
related organization. 2. The filing organization was a royalties, rents, and capital gains
Column (b). Transaction type (a–s). partner or member of the unrelated (including unrelated debt-financed
Enter the transaction type (lines 1a partnership at any time during the filing income).
through 1s). Aggregate all transactions of organization's tax year. 2. The primary purpose of the filing
the same type with the same related 3. The filing organization conducted organization's investment in the
organization. more than 5% of its activities, based on partnership is the production of income or
the greater of its total assets at the end of appreciation of property and not the
Column (c). Amount involved. The its tax year or its total revenue for its tax conduct of a section 501(c)(3) charitable
amount involved in a transaction is the fair year, through the unrelated partnership. activity such as program-related investing.
market value of the services, cash, and
other assets provided by the filing In determining the percentage of the Enter the details of each organization
organization during its tax year, or the fair filing organization's activities as measured on separate lines of Part VI.
market value received by the filing by its total assets, use the amount Some of the information requested in
organization, whichever is higher, reported on Form 990, Part X, line 16, this part is derived from Schedule K-1
regardless of whether the transaction was column (B), as the denominator, and the (Form 1065) issued to the organization. If
entered into by the parties in a prior year. filing organization's ending capital account the Schedule K-1 isn't available, provide a
Any reasonable method for determining balance for the partnership tax year reasonable estimate of the required
such amount is acceptable. ending with or within the filing information.
organization's tax year as the numerator
Column (d). Method of determining (the amount reported on Schedule K-1 Column (a). Name, address, and EIN.
amount involved. Describe the method (Form 1065) can be used). In determining Enter the unrelated partnership's full legal
used to determine the value of the the percentage of the filing organization's name, mailing address, and EIN.
services, cash, and other assets reported activities as measured by its total revenue, Column (b). Primary activity. Briefly
in column (c). use the amount reported on Form 990, describe the primary business activity
Split-interest trusts. If the organization Part VIII, line 12, as the denominator, and conducted, or product or service provided,
engaged in a type of transaction the filing organization's distributive share by the unrelated partnership.
reportable in Part V, line 2, with one or of the partnership's gross revenue for the
more split-interest trusts described in partnership tax year ending with or within Column (c). Legal domicile. List the
section 4947(a)(2), the organization may the filing organization's tax year as the U.S. state (or U.S. possession) or foreign
enter in column (a) the term “Charitable numerator. country in which the unrelated partnership
is organized (the state or foreign country
remainder trust,” “Charitable lead trust,” or Example. X, a section 501(c)(3) whose law governs the unrelated
“Pooled income fund,” as appropriate, organization, is a partner of Y, an partnership's internal affairs).
instead of the trust's name. For instance, if unrelated partnership, which conducts an
the organization carried a $100,000 activity that constitutes an unrelated Column (d). Predominant income.
liability for a loan it received from a related trade or business with respect to X. X's Classify the predominant type of income
charitable lead trust, it should enter distributive share of Y's total income is as:
“Charitable lead trust” in column (a), $60,000 for Y's tax year ending with or • Related;
transaction type “e” in column (b), and within X's tax year. X has an ending capital • Unrelated; or
“$100,000” in column (c). Multiple account balance in Y of $120,000 as • Excluded from tax under section 512,
transactions of the same type with the reported on Schedule K-1 (Form 1065). 513, or 514.
same type of split-interest trust may be X's total revenue and total assets for its In other words, enter one of the three
aggregated on the same line, with the tax year are $1,000,000 and $1,200,000, types of income listed above that is more
number of each type of trust listed in respectively. Because X's total assets prevalent than the others. For
parentheses. For instance, if the exceed X's total revenue for its tax year, X classification purposes, use the definitions
organization received $60,000 from one must consider total assets in determining set forth in the instructions to the
related charitable remainder trust as whether X conducted more than 5% of its Statement of Revenue in Form 990, Part
payment for investment services and activities through Y for X's tax year. X VIII, columns (B), (C), and (D).
$70,000 from another related charitable conducted 10% of its activities through Y,
remainder trust as payment for investment as measured by X's total assets Column (e). Section 501(c)(3) part-
services during the tax year, it may enter ($120,000/$1,200,000), and thus must ners. Check “Yes” if all the partners of the
“Charitable remainder trusts (2)” in column identify Y in Schedule R (Form 990), Part unrelated partnership (or members of the
(a), transaction type “l” in column (b), and VI, and provide the required information. LLC) are section 501(c)(3) organizations
“$130,000” in column (c). If, 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- 2022 Instructions for Schedule R (Form 990)
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