Instructions For Schedule R (Form 990) - 2016 (Page 6 of 7) in pdf

controlled entity of the filing

remainder trust,” “Charitable lead trust,” or

activity that constitutes an unrelated

organization, as defined in section

“Pooled income fund,” as appropriate,

trade or business with respect to X. X's

512(b)(13), during the tax year.

instead of the trust's name. For instance, if

distributive share of Y's total income is

All transactions described in line 1a,

the organization carried a $100,000

$60,000 for Y's tax year ending with or

which includes all receipts or accruals of

liability for a loan it received from a related

within X's tax year. X has an ending capital

interest, annuities, royalties, or rent from a

charitable lead trust, it should enter

account balance in Y of $120,000 as

controlled entity under section 512(b)(13),

“Charitable remainder trust” in column (a),

reported on Schedule K-1 (Form 1065).

regardless of amount.

transaction type “e” in column (b), and

X's total revenue and total assets for its

Any other type of transaction described

“$100,000” in column (c). Multiple

tax year are $1,000,000 and $1,200,000,

in lines 1b through 1s with controlled

transactions of the same type with the

respectively. Because X's total assets

entities, if the amounts involved during the

same type of split-interest trust may be

exceed X's total revenue for its tax year, X

tax year between the filing organization

aggregated on the same line, with the

must consider total assets in determining

and a particular controlled entity exceed

number of each type of trust listed in

whether X conducted more than 5% of its

$50,000 for that type of transaction.

parentheses. For instance, if the

activities through Y for X's tax year. X

organization received $60,000 from one

conducted 10% of its activities through Y,

Section 501(c)(3) organizations must

related charitable remainder trust as

as measured by X's total assets

also report on line 2 transactions

payment for investment services and

($120,000/$1,200,000), and thus must

described in Part V, lines 1b through 1s

$70,000 from another related charitable

identify Y in Schedule R (Form 990), Part

that they engaged in with related

remainder trust as payment for investment

VI, and provide the required information.

tax-exempt organizations not described in

services during the tax year, it may enter

If, instead, X's total revenue for its tax year

section 501(c)(3) (including section 527

“Charitable remainder trusts (2)” in column

was $1,300,000, then total revenue would

political organizations), if the amounts

(a), transaction type “l” in column (b), and

be considered rather than total assets; X's

involved during the tax year between the

“$130,000” in column (c).

activities conducted through Y, as

filing organization and a particular related

measured by X’s total revenue

tax-exempt organization exceed $50,000.

Part VI. Unrelated

($60,000/$1,300,000) wouldn't be greater

Enter the details of each related

than 5% of X's total activities, and

Organizations Taxable as

organization and each transaction type on

therefore X wouldn't be required to identify

a Partnership

a separate line of the table. If there are

Y in Schedule R (Form 990), Part VI.

more related organizations or transaction

In this part, provide information on any

types to report than space available, use

Disregard the unrelated partnerships

unrelated organization (an organization

as many duplicate copies of Part V as

that meet both of the following conditions.

that isn't a related organization with

needed, and number each page.

1. 95% or more of the filing

respect to the filing organization) that

Transactions of a specified type described

organization's total revenue from the

meets all of the following conditions.

in lines 1b through 1s with a particular

partnership for the partnership's tax year

1. The unrelated organization is

organization don't need to be reported if

ending with or within the organization's tax

treated as a partnership for federal tax

the total amount of transactions of such

year is described in sections 512(b)(1)–(3)

purposes (S corporations are excluded).

type during the tax year didn't exceed

and (5), such as interest, dividends,

$50,000.

2. The filing organization was a

royalties, rents, and capital gains

partner or member of the unrelated

(including unrelated debt-financed

Column (a). Name of related organiza-

partnership at any time during the filing

income).

tion. Enter the full legal name of the

organization's tax year.

related organization.

2. The primary purpose of the filing

3. The filing organization conducted

organization's investment in the

Column (b). Transaction type (a–s).

more than 5% of its activities, based on

partnership is the production of income or

Enter the transaction type (lines 1a

the greater of its total assets at the end of

appreciation of property and not the

through 1s). Aggregate all transactions of

its tax year or its total revenue for its tax

conduct of a section 501(c)(3) charitable

the same type with the same related

year, through the unrelated partnership.

activity such as program-related investing.

organization.

In determining the percentage of the

Enter the details of each organization

Column (c). Amount involved. The

filing organization's activities as measured

on separate lines of Part VI. If there are

amount involved in a transaction is the fair

by its total assets, use the amount

more organizations to report in Part VI

market value of the services, cash, and

reported on Form 990, Part X, line 16,

than space available, use as many

other assets provided by the filing

column (B), as the denominator, and the

duplicate copies of Part VI as needed, and

organization during its tax year, or the fair

filing organization's ending capital account

number each page.

market value received by the filing

balance for the partnership tax year

organization, whichever is higher,

ending with or within the filing

Some of the information requested in

regardless of whether the transaction was

organization's tax year as the numerator

this part is derived from Schedule K-1

entered into by the parties in a prior year.

(the amount reported on Schedule K-1

(Form 1065) issued to the organization. If

Any reasonable method for determining

(Form 1065) can be used). In determining

the Schedule K-1 isn't available, provide a

such amount is acceptable.

the percentage of the filing organization's

reasonable estimate of the required

Column (d). Method of determining

activities as measured by its total revenue,

information.

amount involved. Describe the method

use the amount reported on Form 990,

Column (a). Name, address, and EIN.

used to determine the value of the

Part VIII, line 12, as the denominator, and

Enter the unrelated partnership's full legal

services, cash, and other assets reported

the filing organization's distributive share

name, mailing address, and EIN.

in column (c).

of the partnership's gross revenue for the

partnership tax year ending with or within

Column (b). Primary activity. Briefly

Split-interest trusts. If the organization

the filing organization's tax year as the

describe the primary business activity

engaged in a type of transaction

numerator.

conducted, or product or service provided,

reportable in Part V, line 2, with one or

by the unrelated partnership.

Example. X, a section 501(c)(3)

more split-interest trusts described in

organization, is a partner of Y, an

section 4947(a)(2), the organization may

Column (c). Legal domicile. List the

unrelated partnership, which conducts an

enter in column (a) the term “Charitable

U.S. state (or U.S. possession) or foreign

2017 Instructions for Schedule R (Form 990)

-6-

Instructions For Schedule R (Form 990) - 2016 Page 6

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