Form 8865 Return of U.S. Persons With Respect to Certain Foreign P

Form

8865

Return of U.S. Persons With Respect to
Certain Foreign Partnerships

▶

Department of the Treasury
Internal Revenue Service

2016

▶ Attach to your tax return.
Information about Form 8865 and its separate instructions is at www.irs.gov/form8865.

beginning

Attachment
Sequence No.

Information furnished for the foreign partnership’s tax year
, 2016, and ending
, 20

A Category of filer (see Categories of Filers in the instructions and check applicable box(es)):

Filer’s address (if you are not filing this form with your tax return)

1

2

3

4

B Filer’s tax year beginning

, 20

, and ending

Filer’s share of liabilities: Nonrecourse $
Qualified nonrecourse financing $
If filer is a member of a consolidated group but not the parent, enter the following information about the parent:
Name

(1) Name

G1

, 20

Other $

EIN

Address
Check if any excepted specified foreign financial assets are reported on this form (see instructions)
Information about certain other partners (see instructions)

E
F

118

Filer’s identifying number

Name of person filing this return

C
D

OMB No. 1545-1668

(2) Address

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(4) Check applicable box(es)

(3) Identifying number

Category 1

Category 2 Constructive owner

2(a) EIN (if any)

Name and address of foreign partnership

2(b) Reference ID number (see instr.)
3 Country under whose laws organized
4

H
1

5 Principal place of
business

Date of
organization

6 Principal business
activity code number

7 Principal business
activity

Provide the following information for the foreign partnership’s tax year:
Name, address, and identifying number of agent (if any) in the
United States

8a Functional currency

8b Exchange rate
(see instr.)

2 Check if the foreign partnership must file:
Form 1042

Form 8804

Form 1065 or 1065-B

Service Center where Form 1065 or 1065-B is filed:

3

4 Name and address of person(s) with custody of the books and
records of the foreign partnership, and the location of such books
and records, if different

Name and address of foreign partnership’s agent in country of
organization, if any

5

Were any special allocations made by the foreign partnership?

6

Enter the number of Forms 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities,
attached to this return (see instructions) . . . . . . . . . . . . . . . . . . . . . . . ▶
How is this partnership classified under the law of the country in which it is organized? . ▶

7
8a
b
9

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▶

Does the filer have an interest in the foreign partnership, or an interest indirectly through the foreign partnership, that is a separate
unit under Reg. 1.1503(d)-1(b)(4) or part of a combined separate unit under Reg. 1.1503(d)-1(b)(4)(ii)? If “No,” skip question 8b. ▶
If “Yes,” does the separate unit or combined separate unit have a dual consolidated loss as defined in Reg. 1.1503(d)-1(b)(5)(ii)? ▶
Does this partnership meet both of the following requirements?
• The partnership’s total receipts for the tax year were less than $250,000 and
• The value of the partnership’s total assets at the end of the tax year was less than $1 million.
If “Yes,” do not complete Schedules L, M-1, and M-2.

Signature of general partner or limited liability company member

Print/Type preparer’s name

Firm’s name

Preparer’s signature

▲

Paid
Preparer
Use Only

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▶

No

Yes
Yes

No
No

Yes

No

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct, and complete. Declaration of preparer (other than general partner or limited liability company member) is based on all
information of which preparer has any knowledge.
▲

Sign Here
Only If You
Are Filing
This Form
Separately
and Not With
Your Tax
Return.

}

Yes

Date

Date

PTIN

Firm’s EIN ▶

▶

Firm’s address ▶

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Check
if
self-employed
Phone no.

Cat. No. 25852A

Form 8865 (2016)

Form 8865 (2016)

Page 2

Schedule A

Constructive Ownership of Partnership Interest. Check the boxes that apply to the filer. If you check
box b, enter the name, address, and U.S. taxpayer identifying number (if any) of the person(s) whose
interest you constructively own. See instructions.
a
Name

Schedule A-1

b

Owns a direct interest
Address

Address

Does the partnership have any other foreign person as a direct partner?

Check if
foreign
person

Check if
direct
partner

Check if
foreign
person

Identifying number (if any)

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Yes

No

Affiliation Schedule. List all partnerships (foreign or domestic) in which the foreign partnership owns a
direct interest or indirectly owns a 10% interest.
Name

Schedule B

Identifying number (if any)

Certain Partners of Foreign Partnership (see instructions)
Name

Schedule A-2

Owns a constructive interest

EIN
(if any)

Address

Total ordinary
income or loss

Check if
foreign
partnership

Income Statement—Trade or Business Income

Deductions (see instructions for limitations)

Income

Caution: Include only trade or business income and expenses on lines 1a through 22 below. See the instructions for more information.

1a
b
2
3
4
5
6
7

Gross receipts or sales . . . . . . . . . . . . . .
1a
Less returns and allowances . . . . . . . . . . . . .
1b
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . .
Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . .
Ordinary income (loss) from other partnerships, estates, and trusts (attach statement)
Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . .
Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . .
Other income (loss) (attach statement) . . . . . . . . . . . . . . .

8
9
10
11
12
13
14
15
16 a
b
17
18
19
20

Total income (loss). Combine lines 3 through 7 . . . . . . . .
Salaries and wages (other than to partners) (less employment credits) .
Guaranteed payments to partners . . . . . . . . . . . . .
Repairs and maintenance . . . . . . . . . . . . . . . .
Bad debts . . . . . . . . . . . . . . . . . . . . .
Rent . . . . . . . . . . . . . . . . . . . . . . .
Taxes and licenses . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . .
Depreciation (if required, attach Form 4562) . . . . . . . . 16a
Less depreciation reported elsewhere on return . . . . . . 16b
Depletion (Do not deduct oil and gas depletion.) . . . . . . . .
Retirement plans, etc. . . . . . . . . . . . . . . . . .
Employee benefit programs . . . . . . . . . . . . . . .
Other deductions (attach statement) . . . . . . . . . . . .

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1c
2
3
4
5
6
7

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16c
17
18
19
20

21

Total deductions. Add the amounts shown in the far right column for lines 9 through 20 .

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21

22

Ordinary business income (loss) from trade or business activities. Subtract line 21 from line 8

22
Form 8865 (2016)

Page 3

Form 8865 (2016)

Other Information

Alternative
Minimum Tax
(AMT) Items

Foreign Transactions

Credits

SelfEmployment

Deductions

Income (Loss)

Schedule K
1
2
3a
b
c
4
5
6

Partners’ Distributive Share Items
Ordinary business income (loss) (page 2, line 22) . . . . . . . .
Net rental real estate income (loss) (attach Form 8825) . . . . . .
Other gross rental income (loss) . . . . . . . . . . .
3a
Expenses from other rental activities (attach statement)
. . .
3b
Other net rental income (loss). Subtract line 3b from line 3a . . . .
Guaranteed payments . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . .
Dividends: a Ordinary dividends . . . . . . . . . . . .
b Qualified dividends
. . . . . . . . .
6b
Royalties . . . . . . . . . . . . . . . . . . . .
Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . .
Net long-term capital gain (loss) (attach Schedule D (Form 1065))
. .
Collectibles (28%) gain (loss) . . . . . . . . . . . .
9b
Unrecaptured section 1250 gain (attach statement) . . . . .
9c
Net section 1231 gain (loss) (attach Form 4797) . . . . . . . .
Type ▶
Other income (loss) (see instructions)
Section 179 deduction (attach Form 4562) . . . . . . . . . .
Contributions . . . . . . . . . . . . . . . . . . .
Investment interest expense . . . . . . . . . . . . . .
(1) Type ▶
Section 59(e)(2) expenditures:
Type ▶
Other deductions (see instructions)
Net earnings (loss) from self-employment . . . . . . . . . .
Gross farming or fishing income . . . . . . . . . . . . .
Gross nonfarm income . . . . . . . . . . . . . . . .
Low-income housing credit (section 42(j)(5)) . . . . . . . . .
Low-income housing credit (other) . . . . . . . . . . . .
Qualified rehabilitation expenditures (rental real estate) (attach Form 3468)
Type ▶
Other rental real estate credits (see instructions)
Type ▶
Other rental credits (see instructions)
Type ▶
Other credits (see instructions)

Total amount
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3c
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5
6a

7
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8
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8
9a
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9a
b
c
10
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10
11
11
12
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12
13 a
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13a
b
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13b
c
(2) Amount ▶ 13c(2)
d
13d
14 a
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14a
b
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14b
c
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14c
15 a
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15a
b
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15b
c
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15c
15d
d
15e
e
15f
f
16 a Name of country or U.S. possession ▶
b Gross income from all sources . . . . . . . . . . . . . . . . . . . .
16b
c Gross income sourced at partner level . . . . . . . . . . . . . . . . . .
16c
Foreign gross income sourced at partnership level
e General category ▶
f Other (attach statement) ▶ 16f
d Passive category ▶
Deductions allocated and apportioned at partner level
g Interest expense ▶
h Other . . . . . . . . . . . . ▶ 16h
Deductions allocated and apportioned at partnership level to foreign source income
j General category ▶
i Passive category ▶
k Other (attach statement) ▶ 16k
l Total foreign taxes (check one): ▶
Paid
Accrued . . . . . . . . . . .
16l
m Reduction in taxes available for credit (attach statement) . . . . . . . . . . . . 16m
n Other foreign tax information (attach statement)
17 a Post-1986 depreciation adjustment . . . . . . . . . . . . . . . . . . .
17a
b Adjusted gain or loss . . . . . . . . . . . . . . . . . . . . . . .
17b
c Depletion (other than oil and gas)
. . . . . . . . . . . . . . . . . . .
17c
d Oil, gas, and geothermal properties—gross income . . . . . . . . . . . . . .
17d
e Oil, gas, and geothermal properties—deductions . . . . . . . . . . . . . . .
17e
f Other AMT items (attach statement) . . . . . . . . . . . . . . . . . . .
17f
18 a Tax-exempt interest income . . . . . . . . . . . . . . . . . . . . .
18a
b Other tax-exempt income . . . . . . . . . . . . . . . . . . . . . .
18b
c Nondeductible expenses . . . . . . . . . . . . . . . . . . . . . .
18c
19 a Distributions of cash and marketable securities . . . . . . . . . . . . . . .
19a
b Distributions of other property
. . . . . . . . . . . . . . . . . . . .
19b
20 a Investment income . . . . . . . . . . . . . . . . . . . . . . . .
20a
b Investment expenses . . . . . . . . . . . . . . . . . . . . . . .
20b
c Other items and amounts (attach statement)

Form 8865 (2016)

Page 4

Form 8865 (2016)

Schedule L

1
2a
b
3
4
5
6
7a
b
8
9a
b
10a
b
11
12a
b
13
14
15
16
17
18
19a
b
20
21
22

Balance Sheets per Books. (Not required if Item H9, page 1, is answered “Yes.”)

Assets
Cash . . . . . . . . . . . . .
Trade notes and accounts receivable . . .
Less allowance for bad debts . . . . .
Inventories . . . . . . . . . . .
U.S. government obligations . . . . .
Tax-exempt securities
. . . . . . .
Other current assets (attach statement) . .
Loans to partners (or persons related to
partners) . . . . . . . . . . . .
Mortgage and real estate loans
. . . .
Other investments (attach statement) . . .
Buildings and other depreciable assets . .
Less accumulated depreciation . . . .
Depletable assets . . . . . . . . .
Less accumulated depletion
. . . . .
Land (net of any amortization) . . . . .
Intangible assets (amortizable only) . . .
Less accumulated amortization
. . . .
Other assets (attach statement) . . . .
Total assets . . . . . . . . . . .
Liabilities and Capital
Accounts payable . . . . . . . . .
Mortgages, notes, bonds payable in less than 1 year
Other current liabilities (attach statement) .
All nonrecourse loans . . . . . . . .
Loans from partners (or persons related to partners)
Mortgages, notes, bonds payable in 1 year or more
Other liabilities (attach statement) . . . .
Partners’ capital accounts . . . . . .
Total liabilities and capital . . . . . .

Beginning of tax year
(a)
(b)

End of tax year
(c)

(d)

Form 8865 (2016)

Page 5

Form 8865 (2016)

Schedule M

Balance Sheets for Interest Allocation
(a)
Beginning of
tax year

(b)
End of
tax year

1
2

Total U.S. assets . . . . . . . . . . . . . . . .
Total foreign assets:
a Passive category . . . . . . . . . . . . . . . .
b General category . . . . . . . . . . . . . . . .
c Other (attach statement) . . . . . . . . . . . . . .
Schedule M-1 Reconciliation of Income (Loss) per Books With Income (Loss) per Return. (Not required if Item H9, page
1, is answered “Yes.”)
1

Net income (loss) per books .

2

Income included on Schedule K,
lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10,
and 11 not recorded on books
this year (itemize):

3

Guaranteed payments (other
than health insurance) . . .

4

Expenses recorded on books
this year not included on
Schedule K, lines 1 through
13d, and 16l (itemize):
a Depreciation $
b Travel and entertainment $

5

Add lines 1 through 4 .

Schedule M-2
1
2

3
4

.

6

Income recorded on books this
year not included on Schedule K,
lines 1 through 11 (itemize):
a Tax-exempt interest $

7

Deductions included on Schedule
K, lines 1 through 13d, and 16l not
charged against book income this
year (itemize): . . . . . .

a Depreciation $

8
9

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Analysis of Partners’ Capital Accounts. (Not required if Item H9, page 1, is answered “Yes.”)

Balance at beginning of year
Capital contributed:
a Cash . . .
b Property . .
Net income (loss) per books .
Other increases (itemize):

6
7

8
9
5

Add lines 6 and 7 . . . . .
Income (loss). Subtract line 8
from line 5 . . . . . . .

Add lines 1 through 4 .

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Distributions: a Cash
.
b Property
Other decreases (itemize):

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Add lines 6 and 7 . . . . .
Balance at end of year. Subtract
line 8 from line 5 . . . . .
Form 8865 (2016)

Page 6

Form 8865 (2016)

Schedule N

Transactions Between Controlled Foreign Partnership and Partners or Other Related Entities

Important: Complete a separate Form 8865 and Schedule N for each controlled foreign partnership. Enter the totals for each type of
transaction that occurred between the foreign partnership and the persons listed in columns (a) through (d).
Transactions
of
foreign partnership

(a) U.S. person
filing this return

1
2

Sales of inventory . . .
Sales of property rights
(patents, trademarks, etc.)

3

6
7

Compensation received for
technical, managerial,
engineering, construction, or
like services . . . . . .
Commissions received .
Rents, royalties, and license
fees received
. . . .
Distributions received . .
Interest received . . .

8

Other .

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9

Add lines 1 through 8 .

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10

Purchases of inventory

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11

Purchases of tangible
property other than inventory
Purchases of property rights
(patents, trademarks, etc.)

4
5

12
13

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16
17

Compensation paid for
technical, managerial,
engineering, construction, or
like services . . . . .
Commissions paid . . .
Rents, royalties, and license
fees paid . . . . . .
Distributions paid . . .
Interest paid . . . . .

18

Other .

19

Add lines 10 through 18 .

20

Amounts borrowed (enter
the maximum loan balance
during the year). See
instructions . . . . .

21

Amounts loaned (enter the
maximum loan balance
during the year). See
instructions . . . . .

14
15

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(b) Any domestic
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

(c) Any other foreign
corporation or partnership
controlling or controlled
by the U.S. person filing
this return

(d) Any U.S. person with a
10% or more direct interest
in the controlled foreign
partnership (other than the
U.S. person filing this return)

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Form 8865 (2016)