how to report k1 received from a US partnership on Japan tax return ?

[dlorah]

Hi, apologize to bother , and I seem can not find a place to ask, decided to give a try at this forum for expats living in Japan

I tried to google this topic, but not be able to find any single discussion or answer on this topic regarding how to report K-1 on Japan tax return. As a US citizen whose US income will be reported in various forms, typically w2, 1099, 8949 and possible K-1 form. Are these forms you rely on for you to report foreign source income paid in abroad on Japanese tax return ? Specifically for K-1 form, box 19a listed as distributions, but it is generally non taxable or irrelevant on US tax return since the number never flows to 1040 tax return, according to some answers. Box19a seems just for internal accounting of the partnership, does not represent the taxable income.

Since K1 have summary page that lists interest income (box 5), dividend income(box6a) as well capital gain(box8, 9a) which appears to be the incomes to be taxed.

Question: As Non-permanent resident in Japan, how to report these forms, especially the k-1 form on Japan tax return ?

Thanks in advance for the help

 

[kristhuy]

@dlorah There is no way to simply convert the numbers on a K-1 to numbers you can use on a Japanese tax return. As you might expect, the form is not designed with Japanese tax compliance in mind. How you report the relevant income in Japan will depend primarily on what kind of asset or activity is actually generating it.

Are you a partner in a US business? If so, what kind of business? What is your role in managing the business? Or are you the owner of an S Corporation? If so, what does the corporation do? Answering these kinds of questions is the first step towards working out how your income should be declared in Japan.

The same applies to Form 8949 btw. The figures on that form (cost basis, etc.) won't have been calculated according to Japanese tax rules. You need to look at the transactions individually and account for them separately (in JPY, etc.) in order to declare the income for Japanese tax purposes. You can't typically prepare a Japanese tax return solely on the basis of US tax forms.

 

[dlorah]

@kristhuy I see, it is interesting though to learn that these forms won’t be able to provide all information needed for a Japanese tax return. by the way, i don't live in japan yet, just a future plan at this moment. The reasons I was asking about k1 things is that I saw a couple of k1 forms I had for some fund I purchased, and just curious how these these numbers be used and played out. Anyway, thanks for the information, and I will dig a little bit more...