North Dakota Fiduciary Beneficiary's Share of North Dakota Income (Loss)

Fiduciary Beneficiary's Share of North Dakota Income (Loss)
Schedule K-1 (Form 38) (2023)
SCHEDULE K-1 (FORM 38)

OFFICE OF STATE TAX COMMISSIONER

2023

SFN 28739 (12-2023)
Estate's or trust's tax year:
Calendar year 2023 (Jan. 1 - Dec. 31, 2023)

Final

Fiscal year: Beginning _________, 2023, Ending _________, 20____

Beneficiary's Share of North Dakota Income (Loss),
Deductions, Adjustments, Credits, and Other Items

Amended

11. Biodiesel/green diesel fuel sales equipment
credit

See separate instructions

12. Employer internship program credit

Part 1 Estate or trust

13. a. Research expense credit

A Estate's or trust's federal EIN

b. Purchased research credit

B Name of estate or trust

14. a. Endowment fund credit (Schedule QEC)
b. Contribution amount (Schedule QEC)

C Fiduciary's name, address, city, state, and ZIP code

c. Endowment fund credit (ND Schedule K-1)
d. Contribution amount (ND Schedule K-1)
15. Workforce recruitment credit

Part 2 Beneficiary information

16. Wages paid to mobilized employee credit

D Beneficiary's SSN or FEIN (from Federal Schedule K-1)

17. Nonprofit private primary school credit
18. Nonprofit private high school credit

E Beneficiary's's name, address, city, state, and ZIP code
(from Federal Schedule K-1)

19. Nonprofit private college credit
20. Automation credit
21. Developmentally disabled/mentally ill
employee credit

F What type of entity is this beneficiary? ____________________________
G If beneficiary is an individual, estate, or trust, beneficiary is a:
Full-year resident of North Dakota
Full-year nonresident of North Dakota
H Is this an eligible nonresident beneficiary
who elected to be included in a composite filing?

Part 3

23. Apprentice tax credit

Part-year resident
of North Dakota

Yes

All beneficiaries:
North Dakota adjustments and tax credits

22. Maternity home, child placing agency, or
pregnancy help center credit

No

Part 4

Nonresident individual, estate, or trust
beneficiary: North Dakota income (loss)

24. Interest income
25. Ordinary dividends
26. Net short-term capital gain

1. Income from non-ND bonds and securities

27. Net long term capital gain

2. State and local income taxes deducted

28. Other portfolio and nonbusiness income

3. Interest from U.S. obligations

29. Ordinary business income

4. Renaissance zone income exemption

30. Net rental real estate income

5. New or expanding business income exemption

31. Other rental income

6. College SAVE contribution deduction

32. Directly apportioned deductions

7. Renaissance zone:

33. Final year deductions

a. Historic property preservation credit
b. Renaissance fund organization credit
c. Nonparticipating property owner credit

34. Other

Part 5

Nonresident beneficiary: North Dakota
income tax withheld or composite tax paid

8. Seed capital investment credit

35. ND distributive share of income (loss)

9. Agricultural commodity processing
facility investment credit

36. North Dakota income tax withheld

10. Biodiesel/green diesel fuel blending credit

37. North Dakota composite income tax

2023 Schedule K-1 Instructions for Beneficiary
SFN 28739 (12-2023), Page 2
Purpose of form

North Dakota Schedule K-1 (Form 38)
is a supplemental schedule provided
by a fiduciary of an estate or trust
to its beneficiaries. It provides
information the beneficiaries may
need to complete their North Dakota
income tax returns. For this purpose,
“beneficiary” includes an owner of a
grantor trust.
Resident individual, estate, or
trust beneficiary. If you are a North
Dakota resident individual, estate, or
trust, your entire distributive share
of income from the estate or trust is
subject to North Dakota income tax.
North Dakota Schedule K-1 was issued
to you only to show your distributive
share of the estate’s or trust’s North
Dakota statutory adjustments and
tax credits that may affect your North
Dakota income tax return. See Part 3
of the schedule.
Nonresident individual, estate,
or trust beneficiary. If you are
a nonresident individual, estate,
or trust, only the portion of your
distributive share of income from
the estate or trust that is derived
from North Dakota sources is subject
to North Dakota income tax. North
Dakota Schedule K-1 was issued to
you to show your distributive share of
the following items:
	 	 North Dakota income, gains,
losses, and deductions. See
Part 4 of the schedule.
	 	North Dakota statutory
adjustments and tax credits. See
Part 3 of the schedule.
	 	North Dakota income tax
withheld from your distributive
share of North Dakota income.
See Part 5 of the schedule.
	  North Dakota income tax paid
on your distributive share
of North Dakota income in a
composite filing. See “Composite
filing election” under “General
instructions” and Part 5 of the
schedule.
Partnership or corporation
beneficiary. If you are a partnership,
C corporation, S corporation, or a
limited liability company treated like
a partnership or corporation, North
Dakota Schedule K-1 was issued to
you only to show your distributive
share of North Dakota statutory
adjustments and tax credits. See
Part 3 of the schedule.

If you are a partnership,
S corporation, or a limited liability
company treated like a partnership or
S corporation, and if your commercial
domicile is located outside North
Dakota, the schedule may also show
your distributive share of the following
items:
	 	North Dakota income subject
to North Dakota income tax
withholding. See Part 5 of the
schedule.
	 	North Dakota income tax
withheld from your distributive
share of North Dakota income.
See Part 5 of the schedule.
	 	North Dakota income tax paid
on your distributive share
of North Dakota income in a
composite filing. See “Composite
filing election” under “General
instructions” and Part 5 of the
schedule.

General instructions

These instructions explain where
to report the information from
Schedule K-1 (Form 38) on the North
Dakota income tax return.
Tax year. References to a North
Dakota form and line number
contained in these instructions are
references to the form in use for the
2023 calendar year. However, if you
file your return on a calendar year
basis, but the estate or trust files its
return on a fiscal year basis, report
the amounts on your return for the
year in which the estate’s or trust’s
fiscal year ends. For example, if
the estate or trust has a fiscal year
ending in February 2024, report the
amounts from the 2023 Schedule K-1
(Form 38) on your 2024 tax return.
The estate’s or trust’s tax year is
shown at the top of the schedule.
Composite filing election. If Item H
in Part 2 of Schedule K-1 (Form 38) is
checked “Yes,” you elected to include
your distributive share of North
Dakota income in a composite filing
by the fiduciary. Ignore any amounts
shown in Parts 3 through 5 of
Schedule K-1 (Form 38); they are not
applicable if you elected to be included
in a composite filing. The income tax
paid on your behalf by the fiduciary
under the composite filing method
satisfies your North Dakota income
tax filing and payment obligations
with respect to your North Dakota
distributive share of income from the

estate or trust. The North Dakota
distributive share of income and
composite income tax paid, as shown
in Part 5 of Schedule K-1 (Form 38),
are provided only for your information.
If you later choose to revoke your
composite filing election and file your
own North Dakota income tax return,
follow the instructions to Parts 3
through 5 to transfer the amounts
from Schedule K-1 (Form 38) to your
return.
Amended Schedule K-1 (Form 38).
If you receive an amended North
Dakota Schedule  K-1 (Form 38) from
the fiduciary for the estate or trust,
you generally must file an amended
North Dakota income tax return to
report the revised information, in
which case a copy of the amended
Schedule K-1 (Form 38) must be
attached to your amended North
Dakota income tax return. If you
previously elected to include your
distributive share of North Dakota
income in a composite filing, and you
are not changing that election, you
generally do not have to take any
action and should retain the amended
Schedule K-1 (Form 38) for your tax
records.

Specific Instructions
Part 3

All beneficiaries–North Dakota
adjustments and tax credits
Except for a nonresident beneficiary
who elected to be included in a
composite filing, the information in
Part 3 of Schedule K-1 (Form 38)
applies to all beneficiaries.
The following lists show where to
enter an amount from Part 3 of
Schedule K-1 (Form 38) on the North
Dakota income tax return. Use the
list that applies to your return. “Not
applicable” in the right-hand column
means that the item does not apply
and should not be entered on the
return.
Lines 1–23
Form ND-1 filer:
Include the amount
from this schedule:	On:
	
	
	
	
	
	
	
	
	

Lines 1–2	
Line 3	
Line 4	
Line 5	
Line 6	
Line 7a	
Line 7b	
Line 7c	
Line 8	

Not applicable
Form ND-1, line 5
Sch. RZ, Part 1, line
Sch. ND-1SA, line 5
Form ND-1, line 12
Sch. RZ, Part 4, line
Sch. RZ, Part 5, line
Sch. RZ, Part 6, line
Sch. ND-1TC, line 4

18
7
4
6

2023 Schedule K-1 Instructions for Beneficiary
SFN 28739 (12-2023), Page 3
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
		
	
Line
	
Line
		
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line
	
Line

9	
10	
11	
12	
13a	
13b	
14a	
14b	
14c	
14d	
15	
16	
17	
18	
19	
20	
21	
22	
23	

Sch. ND-1TC, line 3
Sch. ND-1TC, line 6
Sch. ND-1TC, line 7
Sch. ND-1TC, line 8a
Sch. ND-1TC, line 9a
Sch. ND-1TC, line 9b
Sch. ND-1TC, line 15b
See instructions to
Form ND-1, line 2
Sch. ND-1TC, line 15b
See instructions to
Form ND-1, line 2
Sch. ND-1TC, line 11a
Sch. ND-1TC, line 13
Sch. ND-1PSC, line 4
Sch. ND-1PSC, line 13
Sch. ND-1PSC, line 22
Sch. ND-1TC, line 17a
Sch. ND-1TC, line 22
Sch. ND-1TC, line 24
Sch. ND-1TC, line 25a

Form 38 filer:
Include the amount
from this schedule:	On:
	
Lines 1–2	
	
Line 3	
		
	
Line 4	
	
Lines 5-6	
		
	
Line 7a	
	
Line 7b	
	
Line 7c	
	
Line 8	
	
Line 9	
	
Line 10	
	
Line 11	
	
Line 12	
	
Line 13a	
	
Line 13b	
	
Line 14a	
	
Line 14b	
		
	
Line 14c	
	
Line 14d 	
		
	
Line 15	
	
Line 16	
	
Line 17	
	
Line 18	
	
Line 19	
	
Line 20	
	
Line 21	
	
Line 22	
	
Line 23	

Not applicable
Form 38, page 2,
Part 1, line 4a
Sch. RZ, Part 1, line 18
Form 38, page 2,
Part 1, line 4d
Sch. RZ, Part 4, line 7
Sch. RZ, Part 5, line 4
Sch. RZ, Part 6, line 6
Sch. 38-TC, line 3
Sch. 38-TC, line 2
Sch. 38-TC, line 4
Sch. 38-TC, line 5
Sch. 38-TC, line 6a
Sch. 38-TC, line 7a
Sch. 38-TC, line 7b
Sch. 38-TC, line 12c
Form 38, page 2,
Part 1, line 2
Sch. 38-TC, line 12c
Form 38, page 2,
Part 1, line 2
Sch. 38-TC, line 9a
Sch. 38-TC, line 11
Sch. 38-TC, line 15
Sch. 38-TC, line 16
Sch. 38-TC, line 17
Sch. 38-TC, line 14a
Sch. 38-TC, line 18
Sch. 38-TC, line 19	
Sch. 38-TC, line 20a

Form 40 filer:
Include the amount
from this schedule:	On:
	
	
	
	
	
	
	
	
	
	
	
	

Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line

1	
2	
3	
4	
5	
6	
7a	
7b	
7c	
8	
9	
10	

Sch. SA, line 4
Sch. SA, line 3
Sch. SA, line 10
Sch. RZ, Part 1, line 18
Form 40, page 1, line 9
Not applicable
Sch. RZ, Part 4, line 7
Sch. RZ, Part 5, line 4
Sch. RZ, Part 6, line 6
Sch. TC, line 11
Sch. TC, line 14
Sch. TC, line 12

	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line

11	
12	
13a	
13b	
14a	
14b	
14c	
14d	
15	
16	
17	
18	
19	
20	
21	
22	
23	

Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.
Sch.

TC, line 13
TC, line 16
TC, line 6
TC, line 7
TC, line 15
SA, line 5
TC, line 15
SA, line 5
TC, line 18
TC, line 19
TC, line 3
TC, line 2
TC, line 1
TC, line 22
TC, line 5
TC, line 21
TC, line 24

Forms 58 and 60:

Include the amounts from lines 1–23 of
this schedule on the applicable lines of
Schedule K of Form 58 or Form 60.

Part 4

Nonresident individual, estate,
or trust beneficiary only–North
Dakota income (loss)
If you are a nonresident individual,
estate, or trust, lines 24 through 34 of
Part 4 show your share of the estate’s
or trust’s North Dakota income, gains,
losses, and deductions that you must
report on your North Dakota income
tax return. Transfer these amounts to
your North Dakota income tax return
as instructed below based on the type
of return you are filing.
If the full amount of any item is
not included in your adjusted gross
income on your federal income tax
return because of limitations on the
deductibility of a passive activity loss,
capital loss, section 179 deduction, or
for any other reason, enter on your
North Dakota return only that portion
of the item included in your federal
adjusted gross income.
Attach a statement to your
North Dakota income tax return
explaining any difference between
the amount shown on North
Dakota Schedule K-1 (Form 38)
and the amount reported on your
North Dakota income tax return.
Form ND-1 filer (nonresident
only):
Include the amount	On Schedule ND-1NR,
from this schedule:	Column B:
	
Lines 24-25		 Line 2
	
Lines 26-27		 Line 4
	
Lines 28-32		 Line 6
	
Line 33		 Line 4 or line 8
	
Line 34		 Line 8

Form 38 filer (nonresident only):
Include the amount 	
from this schedule:		
	
Line 24		
	
Line 25		
	
Lines 26-27		
	
Lines 28-32		
	
Line 33		
	
Line 34		

On Page 2, Part 2,
Column B:
Line 1
Line 2
Line 4
Line 5
Line 4 or line 8
Line 8

Part 5

Nonresident beneficiary only
Lines 35 through 37 only apply
if you are (1) an individual not
domiciled in North Dakota, (2) a
trust, including a grantor trust, not
organized under North Dakota law,
or (3) a passthrough entity, such
as a partnership, with a commercial
domicile outside North Dakota.
Line 35
This is the net amount of your North
Dakota distributive share of income
(loss) from the estate or trust. Do
not enter the amount from this line
anywhere on your return. It is for
your information only.
Line 36
This is the amount of North Dakota
income tax withheld by the fiduciary
from your North Dakota distributive
share of income. Enter this amount on
your return as follows:
	 	 If an individual, enter on
Form ND-1, line 26.
	 	 If an estate or trust, enter on
Form 38, page 1, line 8.
	 	 If a partnership, enter on
Form 58, page 1, line 4.
	 	 If an S corporation, enter on
Form 60, page 1, line 5.
Attach a copy of North Dakota
Schedule K-1 (Form 38) to your
return.
Line 37
If you elected to include your North
Dakota distributive share of income
(loss) in a composite filing, this is the
amount of North Dakota composite
income tax paid on your behalf by the
fiduciary. For more information, see
“Composite filing election” on page 1
of these instructions.
Note: If you later choose to file
your own North Dakota income tax
return, you may claim this amount
as a tax payment on your return.
Attach a copy of the North Dakota
Schedule K-1 (Form 38) to your return
to support the amount claimed.