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フォーム 8865 指示

フォーム8865の指示、特定の外国のパートナーシップを尊重する米国人帰国

2018年11月12日

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  • フォーム 8865 - 特定の外国のパートナーシップを尊重する米国人員の帰国
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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 8865  
Return of U.S. Persons With Respect to Certain Foreign Partnerships  
Section references are to the Internal Revenue Code  
What’s New  
unless otherwise noted.  
See What’s New in the Instructions for Form 1065 for  
changes and new Internal Revenue Code sections that  
may affect foreign partnerships with fiscal years, corporate  
partners, or certain impacted activities.  
Contents  
Page  
General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 1  
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 7  
Schedule A. Constructive Ownership of  
Reminders  
Partnership Interest . . . . . . . . . . . . . . . . . . . . . . 11  
Schedules K-2 (Form 8865) and K-3 (Form 8865) for  
partnerships. For tax years beginning after 2020, most  
items of international tax relevance are reported on  
Schedules K-2 and K-3, replacing prior reporting on Form  
8865, Schedules K and K-1, line 16, Foreign transactions,  
and certain reporting on Form 8865, Schedules K and  
K-1, line 20, Other information.  
Schedule A-1. Certain Partners of Foreign  
Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . 11  
Schedule A-2. Foreign Partners of Section 721(c)  
Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . 11  
Schedule A-3. Affiliation Schedule . . . . . . . . . . . . . . 12  
Schedule B. Income Statement—Trade or  
Business Income . . . . . . . . . . . . . . . . . . . . . . . 12  
The schedules are designed to provide greater clarity  
for partners on how to compute their U.S. income tax  
liability regarding items of international tax relevance,  
including claiming deductions and credits. Go to IRS.gov  
for the schedules and the Instructions for Schedules K-2  
and K-3 (Form 8865) for more information. Form 8865,  
Schedules K and K-1, retain line 16 for the partnership to  
check a box indicating that it has items of international tax  
relevance and that it completed Schedules K-2 and K-3.  
For purposes of basis adjustments and to reconcile  
income, Form 8865 retains total foreign taxes paid or  
accrued but moves this reporting to Schedule K, line 21.  
See the Instructions for Form 1065 for amounts to report  
on line 21.  
Schedule D. Capital Gains and Losses . . . . . . . . . . . 12  
Schedule G (Form 8865). Statement of Application  
of the Gain Deferral Method Under Section  
721(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12  
Schedule H (Form 8865). Acceleration Events and  
Exceptions Reporting Relating to Gain Deferral  
Method Under Section 721(c) . . . . . . . . . . . . . . 14  
Schedules K, Partners' Distributive Share Items,  
and K-1 (Form 8865), Partner’s Share of  
Income, Deductions, Credits, etc. . . . . . . . . . . . . 16  
Schedules K-2 (Form 8865), Partners’ Distributive  
Share Items—International, and K-3 (Form  
8865), Partner’s Share of Income, Deductions,  
Credits, etc.—International . . . . . . . . . . . . . . . . 18  
Important: Foreign taxes paid or accrued must be  
reported on Schedules K-2 and K-3 for purposes of  
reporting information necessary for an eligible partner to  
claim a foreign tax credit.  
Schedule L. Balance Sheets per Books . . . . . . . . . . 18  
Schedule M-1. Reconciliation of Income (Loss) per  
Books With Income (Loss) per Return . . . . . . . . 18  
Schedule M-2. Analysis of Partners' Capital  
General Instructions  
Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18  
Only the general instructions for Schedules B, K, K-1,  
M-1, and M-2 are included later in these instructions. If  
you are required to complete these schedules for Form  
8865, use the specific instructions for the corresponding  
schedules of Form 1065, U.S. Return of Partnership  
Income.  
Schedule N. Transactions Between Controlled  
Foreign Partnership and Partners or Other  
Related Entities . . . . . . . . . . . . . . . . . . . . . . . . 18  
Schedule O (Form 8865). Transfer of Property to a  
Foreign Partnership . . . . . . . . . . . . . . . . . . . . . 19  
Schedule P (Form 8865). Acquisitions,  
Dispositions, and Changes of Interests in a  
Foreign Partnership . . . . . . . . . . . . . . . . . . . . . 20  
IF you are completing Form  
8865...  
THEN use the instructions for  
Form 1065...  
List of Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22  
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30  
Schedule B  
page 1 (income and deductions).  
Schedules K and K-1.  
Schedule K-3.  
Schedules K and K-1  
Schedule K-3  
Schedule L  
Future Developments  
For the latest information about developments related to  
Form 8865, its schedules, and its instructions, such as  
legislation enacted after they were published, go to  
Schedule L.  
Schedule M-1  
Schedule M-2  
Schedule M-1.  
Schedule M-2.  
Nov 27, 2023  
Cat. No. 26053N  
     
Note. If you are reporting capital gains and losses, use  
Schedule D (Form 1065). See the Instructions for  
Schedule D (Form 1065).  
Purpose of Form  
Use Form 8865 to report the information required under  
section 6038 (reporting with respect to controlled foreign  
partnerships), section 6038B (reporting of transfers to  
foreign partnerships), or section 6046A (reporting of  
acquisitions, dispositions, and changes in foreign  
partnership interests).  
Who Must File  
A U.S. person qualifying under one or more of the  
Categories of Filers (see below) must complete and file  
Form 8865. These instructions and the Filing  
the information, statements, and schedules required for  
each category of filer. If you qualify under more than one  
category for a particular foreign partnership, you must  
submit all the items required for each category under  
which you qualify.  
Example. If you qualify as a Category 2 and a  
Category 3 filer, you must submit all the schedules  
required of Category 2 filers (page 1 of Form 8865, and  
Schedules A, A-2, N, K-1, and K-3) plus any additional  
schedules that Category 3 filers are required to submit  
(Schedules A-1 and O).  
Complete a separate Form 8865 and the applicable  
schedules for each foreign partnership.  
File the 2023 Form 8865 with your income tax return for  
your tax year beginning in 2023.  
If a Form 8832, Entity Classification Election, was filed  
for this entity for the current tax year, see When To File  
and Where To File in the instructions for Form 8832 to  
determine if you are required to attach a copy of the Form  
8832 to the tax return to which the Form 8865 is being  
attached.  
If a domestic section 721(c) partnership is formed on or  
after January 18, 2017, and the gain deferral method is  
applied, then a U.S. transferor must file Form 8865 for that  
partnership. See Regulations section 1.721(c)-6(b)(4).  
and U.S. transferor, later.  
A U.S. transferor that is required to provide information  
for a partnership under Regulations sections 1.721(c)-6(b)  
(2)(iv) and 1.721(c)-6(b)(3)(xi) must file a separate Form  
8865 (along with all necessary schedules and  
attachments) for each partnership treated as a U.S.  
transferor under Regulations sections 1.721(c)-3(d) and  
1.721(c)-6(c)(2). See U.S. transferor, later.  
2
Instructions for Form 8865 (2023)  
   
tax year, no person will be considered a Category 2 filer.  
Categories of Filers  
See the definition of a 10% interest, later.  
Category 1 filer. A Category 1 filer is a U.S. person who  
controlled the foreign partnership at any time during the  
partnership's tax year. Control of a partnership is  
ownership of more than a 50% interest in the partnership.  
See the definition of 50% interest, later. There may be  
more than one Category 1 filer for a partnership for a  
particular partnership tax year. See U.S. person and  
A Category 1 filer also includes a U.S. transferor who  
must report certain information for a section 721(c)  
partnership for the tax year of contribution and  
subsequent years, pursuant to Regulations section  
1.721(c)-6. A Category 1 filer fulfills this reporting  
requirement by filing Schedule G and, in certain  
circumstances, Schedule H. See Section 721(c)  
Category 3 filer. A Category 3 filer is a U.S. person who  
contributed property during that person's tax year to a  
foreign partnership in exchange for an interest in the  
partnership (a section 721 transfer), if that person either:  
1. Owned directly or constructively at least a 10%  
interest in the foreign partnership immediately after the  
contribution, or  
2. The value of the property contributed (when added  
to the value of any other property contributed to the  
partnership by such person, or any related person, during  
the 12-month period ending on the date of transfer)  
exceeds $100,000.  
If a domestic partnership contributes property to a  
foreign partnership, the domestic partnership's partners  
are considered to have transferred a proportionate share  
of the contributed property to the foreign partnership.  
However, if the domestic partnership files Form 8865 and  
properly reports all the required information for the  
contribution, its partners will not be required to report the  
transfer.  
Category 2 filer. A Category 2 filer is a U.S. person who  
at any time during the tax year of the foreign partnership  
owned a 10% or greater interest in the partnership while  
the partnership was controlled by U.S. persons each  
owning at least a 10% interest. However, if the foreign  
partnership had a Category 1 filer at any time during that  
A Category 3 filer includes a U.S. transferor who (a)  
contributes section 721(c) property to a section 721(c)  
Filing Requirements for Categories of Filers  
Category of Filers  
Filing Requirements  
1
2
3
4
Identifying information—page 1 of Form 8865  
Schedule A—Constructive Ownership of Partnership Interest  
Schedule A-1—Certain Partners of Foreign Partnership  
Schedule A-3—Affiliation Schedule  
Schedule B—Income Statement—Trade or Business Income  
Schedule G (Form 8865)—Statement of Application of the Gain Deferral Method Under Section  
721  
Schedule H (Form 8865)—Acceleration Events and Exceptions Reporting Relating to Gain  
Deferral Method Under Section 721(c)  
Schedule K—Partners' Distributive Share Items  
Schedule K-1 (Form 8865)—Partner's Share of Income, Deductions, Credits, etc. (direct partners  
only)  
Schedule K-2 (Form 8865)—Partners’ Distributive Share Items—International  
Schedule K-3 (Form 8865)—Partner’s Share of Income, Deductions, Credits, etc.—International  
Schedule L—Balance Sheets per Books  
Schedule M-1—Reconciliation of Income (Loss) per Books With Income (Loss) per Return  
Schedule M-2—Analysis of Partners' Capital Accounts  
Schedule N—Transactions Between Controlled Foreign Partnership and Partners or Other  
Related Entities  
Schedule D—Schedule D (Form 1065), Capital Gains and Losses  
Schedule O (Form 8865)—Transfer of Property to a Foreign Partnership  
Schedule P (Form 8865)—Acquisitions, Dispositions, and Changes of Interests in a Foreign  
Partnership  
Instructions for Form 8865 (2023)  
3
         
partnership, and (b) has reporting requirements pursuant  
to Regulations section 1.721(c)-6(b)(2). The Category 3  
filer fulfills this reporting requirement by filing Schedule G,  
in addition to Schedule O, and, in certain circumstances,  
Schedule H. See Section 721(c) property, later.  
Category 3 also includes a U.S. person that previously  
transferred appreciated property to the partnership and  
was required to report that transfer under section 6038B, if  
the foreign partnership disposed of such property while  
the U.S. person remained a direct or indirect partner in the  
partnership.  
Category 4 filer. A Category 4 filer is a U.S. person that  
had a reportable event under section 6046A during that  
person's tax year. There are three categories of reportable  
events under section 6046A: acquisitions, dispositions,  
and changes in proportional interests.  
Acquisitions. A U.S. person that acquires a foreign  
partnership interest has a reportable event if:  
has increased or decreased by at least the equivalent of a  
10% interest in the partnership.  
Special rule for a partnership interest owned on  
December 31, 1999. If the U.S. person owned at least a  
10% direct interest in the foreign partnership on  
December 31,1999, then comparisons should be made to  
the person's direct interest on December 31,1999. Once  
the person has a reportable event after December  
31,1999, future comparisons should be made by  
reference to the last reportable event.  
Exceptions to Filing  
Multiple Category 1 filers. If during the tax year of the  
partnership more than one U.S. person qualifies as a  
Category 1 filer, only one of these Category 1 partners is  
required to file Form 8865. A U.S. person with a controlling  
interest in the losses or deductions of the partnership isn’t  
permitted to be the filer of Form 8865 if another U.S.  
person has a controlling interest in capital or profits; only  
the latter may file the return. The U.S. person that files the  
Form 8865 must complete item F on page 1.  
The single Form 8865 to be filed must contain all of the  
information that would be required if each Category 1 filer  
filed a separate Form 8865. Specifically, separate  
Schedules N, K-1, and K-3 (if applicable) must be  
attached to the Form 8865 for each Category 1 filer. Also,  
items B, C, and D on page 1 and Schedule A on page 2 of  
Form 8865 must be completed for each Category 1 filer  
not filing the form. Attach a separate statement listing this  
information to the single Form 8865.  
The person didn’t own a 10% or greater direct interest  
in the partnership and, as a result of the acquisition, the  
person owns a 10% or greater direct interest in the  
partnership (for example, from 9% to 10%). For purposes  
of this rule, an acquisition includes an increase in a  
person's direct proportional interest (see Changes in  
proportional interests, later); or  
Compared to the person's direct interest when the  
person last had a reportable event, after the acquisition  
the person's direct interest has increased by at least a  
10% interest (for example, from 11% to 21%).  
An acquisition of a section 721(c) partnership interest may  
be an acceleration event exception under the gain deferral  
method. See Regulations section 1.721(c)-5. In this case,  
the acquirer may become a successor U.S. transferor and  
may have a reporting requirement under Regulations  
section 1.721(c)-6. See the specific instructions for  
Schedule H, later.  
A Category 1 filer not filing Form 8865 must attach a  
statement entitled “Controlled Foreign Partnership  
Reporting” to that person's income tax return.  
The statement must include the following information.  
A statement that the person qualified as a Category 1  
filer, but is not submitting Form 8865 under the multiple  
Category 1 filers exception.  
Dispositions. A U.S. person that disposes of a foreign  
partnership interest has a reportable event if:  
The name, address, and identifying number (if any) of  
The person owned a 10% or greater direct interest in  
the foreign partnership of which the person qualified as a  
Category 1 filer.  
the partnership before the disposition and, as a result of  
the disposition, the person owns less than a 10% direct  
interest (for example, from 10% to 8%). For purposes of  
this rule, a disposition includes a decrease in a person's  
direct proportional interest; or  
A statement that the filing requirement has been or will  
be satisfied.  
The name and address of the person filing Form 8865  
for this partnership.  
Compared to the person's direct interest when the  
The Internal Revenue Service Center where the Form  
person last had a reportable event, after the disposition  
the person's direct interest has decreased by at least a  
10% interest (for example, from 21% to 11%).  
8865 must be filed (or indicate “electronic filing” if the  
Form 8865 has been or will be filed electronically).  
A U.S. person who qualifies for this exception to  
A disposition of a section 721(c) partnership interest  
may be an acceleration event for purposes of applying the  
gain deferral method. The U.S. transferor may be required  
to recognize gain in an amount equal to the remaining  
built-in gain on the section 721(c) property previously  
contributed to the section 721(c) partnership. See  
Regulations section 1.721(c)-4. For acceleration events  
exceptions, see Regulations section 1.721(c)-5. See the  
specific instructions for Schedule H, later.  
Changes in proportional interests. A U.S. person  
has a reportable event if compared to the person's direct  
proportional interest the last time the person had a  
reportable event, the person's direct proportional interest  
the Category 1 filing requirement would still have  
!
CAUTION  
to file a separate Form 8865 if that person is also  
subject to the filing requirements of Category 3 or 4. This  
separate Form 8865 would include all the information  
required for a Category 3 filer, a Category 4 filer, or a U.S.  
transferor who must report certain information for a  
section 721(c) partnership for the year of contribution and  
subsequent years, pursuant to Regulations section  
1.721(c)-6, in addition to the “Controlled Foreign  
Partnership Reporting” statement.  
Constructive owners. See Constructive ownership,  
later. A Category 1 or 2 filer that doesn’t own a direct  
interest in the partnership and that is required to file this  
4
Instructions for Form 8865 (2023)  
             
form solely because of constructive ownership from a U.S.  
person(s) isn’t required to file Form 8865 if:  
1. Form 8865 is filed by the U.S. person(s) through  
which the indirect partner constructively owns an interest  
in the foreign partnership,  
2. The U.S. person through which the indirect partner  
constructively owns an interest in the foreign partnership  
is also a constructive owner and meets all the  
requirements of this constructive ownership filing  
exception, or  
3. Form 8865 is filed for the foreign partnership by  
another Category 1 filer under the multiple Category 1  
filers exception.  
Example. Partner A doesn’t own an interest in FPS, a  
foreign partnership. Partner A transfers property to FPS in  
exchange for a 15% direct interest. Partner A qualifies as  
a Category 3 filer because he transferred property to a  
foreign partnership and owned at least a 10% interest in  
FPS immediately after the contribution. Partner A is also a  
Category 4 filer because he didn’t own a 10% or greater  
direct interest in FPS and as a result of the acquisition now  
owns a 10% or greater direct interest in FPS. If Partner A  
properly reports the contribution on Form 8865 as a  
Category 3 filer, Partner A isn’t required to report his  
acquisition of the 15% interest in FPS as a Category 4  
filer.  
Relief for Category 1 and 2 Filers When the  
Foreign Partnership Files Form 1065  
If a foreign partnership files Form 1065 for its tax year,  
Category 1 and 2 filers may use a copy of the completed  
Form 1065 schedules in place of the equivalent schedules  
of Form 8865.  
If you file Form 8865 with an electronically filed income  
tax return, see the electronic filing publications identified  
in the instructions for your income tax return for more  
information.  
See the first paragraph under General Instructions,  
earlier, for the Form 1065 schedules that are equivalent to  
the Form 8865 schedules.  
To qualify for the constructive ownership filing  
exception, the indirect partner must file with its income tax  
return a statement entitled “Controlled Foreign Partnership  
Reporting.”  
This statement must contain the following information.  
1. A statement that the indirect partner was required to  
file Form 8865, but isn’t doing so under the constructive  
owners exception.  
2. The names and addresses of the U.S. persons  
whose interests the indirect partner constructively owns.  
3. The name and address of the foreign partnership for  
which the indirect partner would have had to have filed  
Form 8865 but for this exception.  
Example. Partner A is a Category 1 filer with respect  
to FPS, a foreign partnership, during the 2023 tax year.  
FPS completes and files a Form 1065 for its 2023 tax year.  
Instead of completing Schedules B, K, K-2, L, M-1, M-2,  
K-1 and K-3 of Form 8865, Partner A may attach to its  
Form 8865 page 1 of Form 1065 and Form 1065  
Schedules K, K-2, L, M-1, M-2, K-1 and K-3 (including the  
Schedules K-1 and K-3 for Partner A and all other U.S.  
persons owning 10% or greater direct interests in FPS).  
Partner A must complete the following items and  
schedules on Form 8865.  
4. If the indirect partner is a domestic corporation, a  
statement setting forth all the information that the indirect  
partner would have had to provide in response to  
questions G8a and G8b on Form 8865. See Item H10.  
Separate Units Note, later, for more information.  
Members of an affiliated group of corporations filing  
a consolidated return. If one or more members of an  
affiliated group of corporations filing a consolidated return  
qualify as Category 1 or 2 filers for a particular foreign  
partnership, the common parent corporation may file one  
Form 8865 on behalf of all of the members of the group  
required to report. Except for group members who also  
qualify under the constructive owners exception, the Form  
8865 must contain all the information that would have  
been required to be submitted if each group member filed  
its own Form 8865.  
Exception for certain trusts. Trusts relating to state and  
local government employee retirement plans that  
otherwise would have Forms 8865 reporting requirements  
with regard to foreign partnerships aren’t required to file  
Form 8865.  
Exception for certain Category 4 filers. If you qualify  
as a Category 3 and 4 filer because you contributed  
property to a foreign partnership in exchange for a 10% or  
greater interest in that partnership, you aren’t required to  
report this transaction under both Category 3 and 4 filing  
requirements. If you properly report the contribution of  
property under the Category 3 rules, you aren’t required to  
report it as a Category 4 filer. However, the acquisition will  
count as a reportable event to determine if a later change  
in your partnership interest qualifies as a reportable event  
under Category 4.  
The first and second pages.  
Schedule A.  
Schedule A-1.  
Schedule A-2.  
Schedule A-3.  
Schedule G (Form 8865).  
Schedule H (Form 8865).  
Schedule M.  
Schedule N.  
Example. Partner A is a Category 2 filer with respect  
to FPS, a foreign partnership. If FPS completes and files a  
Form 1065 for its 2023 tax year, Partner A may file with  
Form 8865 the Schedules K-1 and K-3 (Form 1065) that it  
receives from the partnership instead of Schedules K-1  
and K-3 (Form 8865). Partner A must complete the  
following items and schedules on Form 8865.  
The first and second pages.  
Schedule A.  
Schedule A-2.  
Schedule N.  
When and Where To File  
Attach Form 8865 to your income tax return (or, if  
applicable, partnership or exempt organization return) and  
Instructions for Form 8865 (2023)  
5
     
file both by the due date (including extensions) for that  
return. If you don’t have to file an income tax return, you  
must file Form 8865 separately with the IRS at the time  
and place you would be required to file an income tax  
return (or, if applicable, a partnership or exempt  
organization return). See below for penalties that may  
apply if you don’t file Form 8865 on time.  
Gain deferral method. The gain deferral method is the  
method described in Regulations section 1.721(c)-3(b)  
applied to avoid the immediate recognition of gain upon a  
contribution of section 721(c) property to a section 721(c)  
partnership under Regulations section 1.721(c)-2(b).  
50% interest. A 50% interest in a partnership is an  
interest equal to:  
50% of the capital,  
Definitions  
50% of the profits, or  
Partnership. A partnership is the relationship between  
two or more persons who join to carry on a trade or  
business, with each person contributing money, property,  
labor, or skill and each expecting to share in the profits  
and losses of the business whether or not a formal  
partnership agreement is made.  
50% of the deductions or losses.  
For purposes of determining a 50% interest, the  
constructive ownership rules described below apply.  
10% interest. A 10% interest in a partnership is an  
interest equal to:  
10% of the capital,  
The term “partnership” includes a limited partnership,  
10% of the profits, or  
syndicate, group, pool, joint venture, or other  
10% of the deductions or losses.  
unincorporated organization, through or by which any  
business, financial operation, or venture is carried on, that  
isn’t, within the meaning of the regulations under section  
7701, a corporation, trust, estate, or sole proprietorship.  
For purposes of determining a 10% interest, the  
constructive ownership rules described below apply.  
Constructive ownership. For purposes of determining  
an interest in a partnership, the constructive ownership  
rules of section 267(c) (excluding section 267(c)(3)) apply,  
taking into account that such rules refer to corporations  
and not to partnerships. Generally, an interest owned  
directly or indirectly by or for a corporation, partnership,  
estate, or trust shall be considered as being owned  
proportionately by its owners, partners, or beneficiaries.  
Also, an individual is considered to own an interest  
owned directly or indirectly by or for their family. The family  
of an individual includes only that individual's spouse,  
siblings, ancestors, and lineal descendants. An interest  
will be attributed from a nonresident alien individual under  
the family attribution rules only if the person to whom the  
interest is attributed owns a direct or indirect interest in the  
foreign partnership under section 267(c)(1) or (5).  
A joint undertaking merely to share expenses isn’t a  
partnership. Mere co-ownership of property that is  
maintained and leased or rented isn’t a partnership.  
However, if the co-owners provide services to the tenants,  
a partnership exists.  
Foreign partnership. A foreign partnership is a  
partnership that isn’t created or organized in the United  
States or under the law of the United States or of any state  
or the District of Columbia. If a domestic section 721(c)  
partnership is formed on or after January 18, 2017, and  
the gain deferral method is applied, then the section  
721(c) partnership is treated as a foreign partnership for  
purposes of Form 8865 and these instructions. See  
Regulations section 1.721(c)-6(b)(4).  
Section 721(c) partnership. A partnership (domestic or  
foreign) is a section 721(c) partnership if there is a  
contribution of section 721(c) property to the partnership  
and, after the contribution (and all transactions related to  
the contribution), (a) a related foreign person with respect  
to the U.S. transferor is a direct or indirect partner in the  
partnership; and (b) the U.S. transferor and related  
persons own 80% or more of the interests in partnership  
capital, profits, deductions, or losses. See Regulations  
section 1.721(c)-1(b)(14).  
U.S. transferor. A U.S. transferor is a U.S. person other  
than a domestic partnership. See Regulations section  
1.721(c)-1(b)(18).  
Section 721(c) property. Section 721(c) property is  
property (other than excluded property) with built-in gain  
that is contributed to a partnership by a U.S. transferor,  
including pursuant to a contribution described in  
Regulations section 1.721(c)-2(d) (partnership  
look-through rule). See Regulations section 1.721(c)-1(b)  
(15).  
U.S. person. A U.S. person is a citizen or resident of the  
United States, a domestic partnership, a domestic  
corporation, and any estate or trust that isn’t foreign. See  
section 7701(a)(30).  
Control of a corporation. For purposes of Schedule N,  
control of a corporation is ownership of stock possessing  
more than 50% of the total combined voting power, or  
more than 50% of the total value of shares of all classes of  
stock of the corporation. For rules concerning indirect  
ownership and attribution, see Regulations section  
1.6038-2(c).  
Change in a proportional interest. A partner's  
proportional interest in a foreign partnership can change  
as a result of changes in other partners' interests, for  
example, when another partner withdraws from the  
partnership. A partner's proportional interest can also  
change, for example, by operation of the partnership  
agreement (for example, if the partnership agreement  
provides that a partner's interest in profits will change on a  
set date or when the partnership has earned a specified  
amount of profits, then the partner's proportional interest  
changes when the set date or specified amount of profits  
is reached).  
Gain deferral contribution. A gain deferral contribution  
is a contribution of section 721(c) property to a section  
721(c) partnership for which the recognition of gain is  
deferred under the gain deferral method. See Regulations  
section 1.721(c)-1(b)(7).  
6
Instructions for Form 8865 (2023)  
                           
the United States (such as an income tax treaty; an estate  
and gift tax treaty; or a friendship, commerce, and  
navigation treaty):  
Penalties  
Failure to timely submit all information required of  
Category 1 and 2 filers.  
Overrides or modifies any provision of the Internal  
A $10,000 penalty is imposed for each tax year of each  
Revenue Code, and  
foreign partnership for failure to furnish the required  
information within the time prescribed. If the information  
isn’t filed within 90 days after the IRS has mailed a notice  
of the failure to the U.S. person, an additional $10,000  
penalty (per foreign partnership) is charged for each  
30-day period, or fraction thereof, during which the failure  
continues after the 90-day period has expired. The  
additional penalty is limited to a maximum of $50,000 for  
each failure.  
Causes (or potentially causes) a reduction of any tax  
incurred at any time.  
Failure to make such a report may result in a $1,000  
penalty ($10,000 in the case of a C corporation). See  
section 6712.  
Section 6662(j). Penalties may be imposed for  
underpayment attributable to undisclosed foreign financial  
asset understatements. The term “undisclosed foreign  
financial asset” for any tax year includes any asset for  
which required information was not provided. An  
"undisclosed foreign financial asset understatement"  
means for any tax year, the portion of the understatement  
for that tax year which is attributable to any transaction  
involving an undisclosed foreign financial asset. No  
penalty will be imposed for any portion of an  
Any person who fails to furnish all of the information  
required within the time prescribed will be subject to a  
reduction of 10% of the foreign taxes available for credit  
under sections 901 and 960. If the failure continues 90  
days or more after the date the IRS mails notice of the  
failure, an additional 5% reduction is made for each  
3-month period, or fraction thereof, during which the  
failure continues after the 90-day period has expired. See  
section 6038 (and the underlying regulations) for the  
maximum reduction, the exception due to reasonable  
cause, and the limits on the amount of these penalties.  
underpayment if the taxpayer can demonstrate that the  
failure to comply was due to reasonable cause for such  
portion of the underpayment and the taxpayer acted in  
good faith for such portion of the underpayment. See  
sections 6662(j) and 6664(c) for additional information.  
Criminal penalties under sections 7203, 7206, and  
7207 may apply for failure to file or for filing false or  
fraudulent information.  
Failure to comply with a requirement of the gain de-  
ferral method. Failure to comply with a requirement of  
the gain deferral method, including a failure to comply with  
the procedural and reporting requirements imposed under  
Regulations sections 1.721(c)-3 and 1.721(c)-6 and  
section 6038B, may result in an acceleration event under  
Regulations section 1.721(c)-4(b)(2) and a penalty under  
section 6038B. See the specific instructions for  
Additionally, any person that files under the constructive  
owners exception may be subject to these penalties if all  
the requirements of the exception aren’t met. Any person  
required to file Form 8865 who doesn’t file under the  
multiple Category 1 filers exception may be subject to the  
above penalties if the other person doesn’t file a correctly  
completed form and schedules. See Exceptions to Filing,  
earlier.  
Failure to file information required of Category 3 fil-  
ers. Any person that fails to properly report a contribution  
to a foreign partnership that is required to be reported  
under section 6038B and the regulations under that  
section is subject to a penalty equal to 10% of the fair  
market value (FMV) of the property at the time of the  
contribution. This penalty is subject to a $100,000 limit,  
unless the failure is due to intentional disregard. In  
addition, the transferor must recognize gain on the  
contribution as if the contributed property had been sold  
for its FMV. See section 6038B for the exception due to  
reasonable cause.  
Schedule G and Schedule H, later.  
Corrections to Form 8865  
If you file a Form 8865 that you later determine is  
incomplete or incorrect, file a corrected Form 8865 with an  
amended tax return following the instructions for the return  
with which you originally filed Form 8865. Enter  
“corrected” at the top of the form and attach a statement  
identifying and explaining the changes.  
Specific Instructions  
Important: All information must be in English. All  
amounts must be stated in U.S. dollars.  
Failure to file information required of Category 4 fil-  
ers. Any person who fails to properly report all the  
information requested by section 6046A is subject to a  
$10,000 penalty, in addition to the section 7203 criminal  
penalty, unless it is shown that such failure is due to  
reasonable cause. If the failure continues for more than 90  
days after the IRS mails notice of the failure, an additional  
$10,000 penalty will apply for each 30-day period (or  
fraction thereof) during which the failure continues after  
the 90-day period has expired. The additional penalty  
shall not exceed $50,000.  
If the information required in a given section exceeds  
the space provided within that section, attach a separate  
statement(s) to provide the remaining information, using  
the same size and format as the printed forms.  
Fill in all applicable lines and schedules. All  
categories of filers must complete all items on pages 1  
and 2, with three exceptions. Complete item E only if, in  
addition to filing the form on your own behalf, you are  
reporting information about other Category 1 filers under  
the multiple Category 1 filers exception, or you are  
reporting information about members of your affiliated  
group of corporations under the consolidated return  
exception. Only Category 1 and 2 filers are required to  
complete item H8. See Exceptions to Filing, earlier.  
Treaty-based return positions. File Form 8833,  
Treaty-Based Return Position Disclosure Under Section  
6114 or 7701(b), to report a return position that a treaty of  
Instructions for Form 8865 (2023)  
7
       
Answer items H10 and H11 only if you are a Category 1  
filer.  
Assets, for the tax year and includes this form in the total  
number of Forms 8865 reported on Form 8938, Part IV,  
line 19. For more information, see the Instructions for  
Form 8938, generally, and in particular, Duplicative  
reporting and Part IV. Excepted Specified Foreign  
Financial Assets.  
Tax Year  
Enter in the space below the title of Form 8865 the tax  
year of the foreign partnership that ended with or within  
the tax year of the person filing this form. Category 1 or 2  
filers must report information for the tax year of the foreign  
partnership that ends with or within their tax years. A  
Category 3 or 4 filer must report on Schedule O or P,  
respectively, transactions that occurred during that filer's  
tax year (rather than during the partnership's tax year).  
Item F  
Information about certain partners. If you are reporting  
information about other persons under the multiple  
Category 1 filers exception, or are reporting information  
about members of your affiliated group of corporations  
under the consolidated return exception (see Exceptions  
to Filing, earlier), identify each such person in item F. List  
their names, addresses, and identifying numbers. Also,  
indicate whether each person is a Category 1 filer or  
Category 2 filer, and whether such person constructively  
owned an interest in the foreign partnership during the tax  
year of the partnership listed at the top of Form 8865,  
page 1. See Constructive ownership, earlier.  
Identifying Numbers and Addresses  
Enter the identifying number of the person filing this  
return. Use an employer identification number (EIN) to  
identify partnerships, corporations, and estates or trusts.  
For individuals, use a social security number (SSN) or  
other identification number.  
Include the suite, room, or other unit number after the  
street address. If the post office doesn’t deliver mail to the  
street address and the U.S. person has a P.O. box, show  
the box number instead.  
Foreign address. Enter the information in the following  
order: city or town, state or province, and country. Follow  
the country's practice for entering the postal code, if any.  
Don’t abbreviate the country name.  
Item G1  
For the foreign partnership's address, enter the city or  
town, the state or province, and the foreign country in that  
order. Follow the foreign country's practice in placing the  
postal code in the address. Don’t abbreviate the country  
name. If the partnership receives its mail in care of a third  
party (such as an accountant or attorney), enter “C/O”  
followed by the third party's name and street address or  
P.O. box.  
Item A. Category of Filer  
Check the box for each category that describes the  
person filing the form. If more than one category applies,  
check all boxes that apply. See Categories of Filers,  
earlier.  
Item G2(a)  
If the foreign partnership has an EIN, enter it here. Don’t  
enter “FOREIGNUS” or “APPLIED FOR.If the partnership  
has no EIN, item G2(b) must be completed.  
Item C  
Item G2(b)  
Enter the filer's share of nonrecourse liabilities,  
partnership-level qualified nonrecourse financing, and  
other liabilities. Nonrecourse liabilities are those liabilities  
of the partnership for which no partner bears the  
economic risk of loss. The extent to which a partner bears  
the economic risk is determined under the rules of  
Regulations section 1.752-2.  
A reference ID number (defined below) is required on item  
G2(b) only in cases where no EIN was entered on item  
G2(a) for the foreign partnership. However, filers are  
permitted to enter both an EIN on item G2(a) and a  
reference ID number on item G2(b). If applicable, enter  
the reference ID number you have assigned to the foreign  
partnership identified on item G1.  
"Qualified nonrecourse financing" generally includes  
financing:  
A “reference ID number” is a number established by or  
on behalf of the U.S. person identified at the top of page 1  
of the form that is assigned to a foreign partnership for  
which Form 8865 reporting is required. These numbers  
are used to uniquely identify the foreign partnership in  
order to keep track of the partnership from tax year to tax  
year.  
For which no one is personally liable for repayment;  
That is borrowed for use in an activity of holding real  
property; and  
That is borrowed from a qualified person (defined in  
section 49(a)(1)(D)(iv)) or is lent or guaranteed by a  
federal, state, or local government.  
The reference ID number must meet the requirements  
below. Don’t enter “FOREIGNUS” or “APPLIED FOR” with  
respect to the reference ID number.  
See section 465(b)(6) for more information on qualified  
nonrecourse financing.  
Item D. Identification of Common Parent  
If the person filing the form is a member of a consolidated  
group, but not the parent, list the name, address, and EIN  
of the filer's common parent.  
Note. Because reference ID numbers are established by  
or on behalf of the U.S. person filing Form 8865, there is  
no need to apply to the IRS to request a reference ID  
number or for permission to use these numbers.  
Item E  
Note. Generally, the reference ID number assigned to a  
foreign partnership on Form 8865 has relevance only on  
Form 8865, its schedules, and any other form that is  
Check the item E checkbox only if the Form 8865 filer also  
files Form 8938, Statement of Specified Foreign Financial  
8
Instructions for Form 8865 (2023)  
         
attached to or associated with Form 8865, and should not  
be used for that foreign partnership on other IRS forms.  
However, the foreign partnership's reference ID number  
should also be entered on Form 8858, Information Return  
of U.S. Persons With Respect to Foreign Disregarded  
Entities, if the foreign partnership is listed as a tax owner  
of a foreign disregarded entity on Form 8858. See the  
instructions for Form 8858, line 3c(2), for more  
information.  
Item G6. Principal Business Activity Code  
If the foreign partnership filed Form 1065. Enter the  
business code number (principal business activity code)  
shown in item C of the Form 1065 filed by the partnership.  
If the foreign partnership did not file Form 1065.  
Enter the applicable principal business activity code from  
Product or Service at the end of these instructions. If the  
information necessary to apply the total receipts test is not  
available, pick a principal business activity code using the  
information you have about the partnership.  
Requirements  
The reference ID number that is entered on item G2(b)  
must be alphanumeric (defined below) and no special  
characters or spaces are permitted. The length of a given  
reference ID number is limited to 50 characters.  
Item G8a. Functional Currency  
Enter the foreign partnership's functional currency. See  
sections 985 through 989 and the regulations thereunder.  
If the partnership had more than one qualified business  
unit (QBU), described in Regulations section  
For these purposes, the term “alphanumeric” means  
the entry can be alphabetical, numeric, or any  
combination of the two.  
1.989(a)-1(b)(2)(ii), attach a statement identifying each  
QBU, its country of operation, and its functional currency.  
A QBU under Regulations section 1.989(a)-1(b)(2)(ii) is  
any separate and clearly identified unit of a trade or  
business of the partnership which maintains separate  
books and records.  
The same reference ID number must be used  
consistently from tax year to tax year for a given foreign  
partnership. If for any reason a reference ID number falls  
out of use (for example, the foreign partnership no longer  
exists due to disposition or liquidation), the reference ID  
number used for that foreign partnership cannot be used  
again for another foreign partnership for purposes of Form  
8865 reporting.  
Hyperinflationary exception. A partnership that has a  
hyperinflationary currency as its functional currency is  
subject to special rules set forth in Regulations section  
1.985-3. Generally, under these rules, a partnership must  
use the U.S. dollar as its functional currency.  
There are some situations that warrant correlation of a  
new reference ID number with a previous reference ID  
number when assigning a new reference ID number to a  
foreign partnership. For example:  
Item G8b. Exchange Rate  
When translating functional currency to U.S. dollars, you  
must use the method specified in sections 985 through  
989 and the regulations thereunder. But, regardless of the  
specific method required, all exchange rates must be  
reported using a “divide-by convention” rounded to at  
least four places. That is, the exchange rate must be  
reported in terms of the amount by which the functional  
currency amount must be divided in order to reflect an  
equivalent amount of U.S. dollars. As such, the exchange  
rate must be reported as the units of foreign currency that  
equal one U.S. dollar, rounded to at least four places.  
Don’t report the exchange rate as the number of U.S.  
dollars that equals one unit of foreign currency.  
In the case of a merger or acquisition, a Form 8865 filer  
must use a reference ID number which correlates the  
previous reference ID number with the new reference ID  
number assigned to the foreign partnership; or  
In the case of an entity classification election that is  
made on behalf of the foreign partnership on Form 8832,  
Regulations section 301.6109-1(b)(2)(v) requires the  
foreign partnership to have an EIN for this election. For the  
first year that Form 8865 is filed after an entity  
classification election is made on behalf of the foreign  
partnership on Form 8832, the new EIN must be entered  
on item G2(a) of Form 8865 and the old reference ID  
number must be entered on item G2(b). In subsequent  
years, the filer may continue to enter both the EIN on item  
G2(a) and the reference ID number on item G2(b), but  
must enter at least the EIN on item G2(a).  
You must correlate the reference ID numbers as  
follows: New reference ID number (space) Old reference  
ID number. If there is more than one old reference ID  
number, you must enter a space between each such  
number. As indicated above, the length of a given  
reference ID number is limited to 50 characters and each  
number must be alphanumeric and no special characters  
are permitted.  
Note. You must round the result to more than four places  
if failure to do so would materially distort the exchange  
rate or the equivalent amount of U.S. dollars.  
Item H2  
If the foreign partnership was required to file Form 1065  
for the partnership's tax year listed at the top of page 1 of  
Form 8865, check the applicable box and enter the  
Internal Revenue Service Center where the form was or  
will be filed (or enter “electronic filing” if the form was or  
will be filed electronically). Also, check the applicable  
box(es) if the foreign partnership was required to file (for  
its tax year) Form 8804, Annual Return for Partnership  
Withholding Tax (Section 1446); or (for the calendar year  
ending with or within the foreign partnership's tax year)  
Form 1042, Annual Withholding Tax Return for U.S.  
Source Income of Foreign Persons.  
Note. This correlation requirement applies only to the first  
year the new reference ID number is used.  
Instructions for Form 8865 (2023)  
9
   
Item H5  
IF amounts were reported on  
the following Schedule on  
Form 8858...  
THEN take those amounts into  
account (converting from  
GAAP to tax as necessary)  
when determining the amounts  
to be reported on this  
Section 267A disallows a deduction for certain interest or  
royalty paid or accrued in agreement with a hybrid  
arrangement, to the extent that, under the foreign tax law,  
there isn’t a corresponding income inclusion (including  
long-term deferral). In the case of a filer that is a tax  
resident of the United States (for example, a domestic  
corporation or citizen of the United States), report in item  
H5 the total amount of interest and royalty paid or accrued  
by the foreign partnership for which your distributive share  
of deductions is disallowed under section 267A. In the  
case of a filer that isn’t a tax resident of the United States  
(for example, a domestic partnership), only report in item  
H5 the portion of your distributive share of interest and  
royalty paid or accrued by the foreign partnership for  
which you know, or have reason to know, that one or more  
of your owners aren’t allowed a deduction under section  
267A. For additional information about section 267A,  
including the application of section 267A in the case of  
payments by a partnership, see IRS.gov/businesses/  
Schedule on Form 8865...  
Schedule C  
Schedule F  
Schedule J  
Schedule M  
Schedule B.  
Schedule L.  
Section 4, Part III, Schedule K-2.  
Schedule N.  
Item H10. Separate Units  
Note. Only Category 1 filers (or indirect partners that are  
filing the constructive ownership exception statement) are  
required to answer items H10a and H10b, if applicable.  
Answer "Yes" to item H10a if the filer is a domestic  
corporation and (a) the partnership is a hybrid entity; or (b)  
the filer, through its interest in the partnership, indirectly  
owns an interest in a hybrid entity or indirectly carries on a  
business operation outside the United States that, if  
carried on by a U.S. person, would constitute a foreign  
branch (as defined in Regulations section 1.367(a)-6T(g)  
(1)). Under Regulations section 1.1503(d)-1(b)(3), a  
hybrid entity means an entity that isn’t taxable as an  
association for U.S. federal tax purposes, but is subject to  
an income tax of a foreign country as a corporation (or  
otherwise at the entity level) either on its worldwide  
income or on a residence basis. If the answer to item  
H10a is "No," skip item H10b.  
Item H6  
Answer “Yes” to item H6 if the partnership is a section  
721(c) partnership. If the answer is “Yes,see the specific  
instructions for Schedules G and H, relating to the gain  
deferral method, and, if applicable, Schedule O, relating to  
the contribution of property during the tax year. See  
Item H8  
See Regulations section 1.1503(d)-1(b)(4) for more  
information on separate units, including information on  
when two or more individual separate units are combined  
and treated as one separate unit. If you answer “Yes” to  
item H10b, then, for each separate unit that has a dual  
consolidated loss, attach a statement that sets forth (a)  
the identity and country of operation of the separate unit  
or, in the case of a combined separate unit, the identity  
and country of operation of each individual separate unit  
that is treated as part of the combined separate unit; and  
(b) the amount of the dual consolidated loss. See  
Regulations section 1.1503(d)-5 for rules on determining  
the amount of a dual consolidated loss attributable to a  
separate unit.  
Note. Only Category 1 and 2 filers are required to  
complete item H8.  
Enter the number of Forms 8858 attached to Form  
8865. A disregarded entity is an entity that is disregarded  
as an entity separate from its owner under Regulations  
section 301.7701-2(c)(2). The partnership is the tax owner  
of the foreign disregarded entity if it is treated as owning  
the assets and liabilities of the foreign disregarded entity  
for purposes of U.S. income tax law.  
If the foreign partnership is the tax owner of a foreign  
disregarded entity or operates a foreign branch and you  
are a Category 1 or 2 filer of Form 8865, complete and  
attach Form 8858 to Form 8865. For more information,  
see the Instructions for Form 8858. In addition, if the  
foreign partnership is required to attach Form 8858 to  
Form 8865, the amounts reported on certain schedules on  
Form 8858 must be included in determining the amounts  
reported on the equivalent schedules as follows.  
Item H11  
Note. Only Category 1 filers are required to answer item  
H11.  
Answer “Yes” to item H11 if the partnership meets both  
of the requirements shown on the form. Total receipts is  
defined as the sum of gross receipts or sales (Schedule B,  
line 1a); all other income reported on Schedule B (lines 4  
through 7); income reported on Schedule K, lines 3a, 5,  
6a, and 7; income or net gain reported on Schedule K,  
lines 8, 9a, 10, and 11; and income or net gain reported  
on Form 8825, Rental Real Estate Income and Expenses  
of a Partnership or an S Corporation, lines 2, 19, and 20a.  
Item H12  
Check the “Yes” box on item H12a if the filer of this Form  
8865 is claiming a deduction under section 250 for  
10  
Instructions for Form 8865 (2023)  
 
foreign-derived intangible income (FDII), and enter the  
amounts requested on items H12b, H12c, and H12d.  
Enter U.S. dollar amounts on items H12b, H12c, and  
H12d, translated from functional currency at the average  
exchange rate for the foreign partnership's tax year (see  
section 989(b)).  
Category 3 filers. Category 3 filers must list the persons  
(U.S. and foreign) whose interests in the foreign  
partnership they constructively owned during the filer's tax  
year that the reportable transfer occurred. See  
Partnership, later.  
The reported amounts should provide information for  
transactions between the filer of the Form 8865 and the  
foreign partnership. See Form 8993 and its instructions for  
information on the section 250 deduction. If no deduction  
is being claimed, check the “No” box.  
Schedule A-1. Certain Partners of  
Foreign Partnership  
All Category 1 and certain Category 3 filers must  
complete Schedule A-1. Any person already listed on  
Schedule A isn’t required to be listed again on  
Schedule A-1.  
Item H14  
Answer “Yes” if at any time during the year there were  
transfers between the partnership and its partners subject  
to the disclosure requirements of Regulations section  
1.707-8. For certain transfers that are presumed to be  
sales, the partnership or the partners must comply with  
the disclosure requirements in Regulations section  
1.707-8. Generally, disclosure is required when:  
Category 1 filers. Category 1 filers must list all U.S.  
persons who owned at least a 10% direct interest in the  
foreign partnership during the partnership's tax year listed  
at the top of page 1 of Form 8865.  
Category 3 filers. Category 3 filers must list:  
Each U.S. person that owned a 10% or greater direct  
1. Certain transfers to a partner are made within 2  
years of a transfer of property by the partner to the  
partnership;  
2. Certain debt is incurred by a partner within 2 years  
of the earlier of (a) a written agreement to transfer, or (b) a  
transfer of the property that secures the debt, if the debt is  
treated as a qualified liability; or  
interest in the foreign partnership during the Category 3  
filer's tax year, and  
Any other person related to the Category 3 filer that was  
a direct partner in the foreign partnership during that tax  
year.  
See Regulations section 1.6038B-2(i)(4) for the  
definition of a related person.  
3. Transfers from a partnership to a partner occur  
Exception. Category 3 filers who only transferred cash  
and didn’t own a 10% or greater interest in the transferee  
partnership after the transfer aren’t required to complete  
Schedule A-1.  
which are the equivalent to those listed in (1) or (2) above.  
The disclosure must be made on the transferor  
partner's return using Form 8275, Disclosure Statement,  
or on an attached statement providing the same  
information. When more than one partner transfers  
property to a partnership under a plan, the disclosure may  
be made by the partnership rather than each partner.  
Schedule A-2. Foreign Partners of  
Section 721(c) Partnership  
Schedule A-2 must be completed if (1) item H6 is  
answered “Yes” (that the partnership is a section 721(c)  
partnership); and (2) during the current tax year, a gain  
deferral contribution occurred, or (3) a gain deferral  
contribution occurred in a prior tax year (including before  
2021) and, during the current tax year, the gain deferral  
method is applied to section 721(c) property contributed  
in the prior gain deferral contribution. See Section 721(c)  
method, earlier.  
Signature  
Filer. Don’t sign Form 8865 if you are filing it as an  
attachment to your income tax return. Sign the return only  
if you are filing Form 8865 separately because you aren’t  
required to file a U.S. income tax return. See When and  
Where To File, earlier, for more information.  
Paid preparer. Don’t sign Form 8865 or complete the  
paid preparer section at the bottom of the form if Form  
8865 is filed as an attachment to an income tax return.  
Sign Form 8865 and complete the paid preparer section  
only if Form 8865 is filed separately.  
Country of organization. Insert the 2-letter country  
code for the country of organization for any foreign  
partner, other than an individual. See country codes on  
Check if related to U.S. transferor. Check the box if the  
partner is directly or indirectly related to the U.S. transferor  
(within the meaning of section 267(b) or 707(b)(1)) and  
isn’t a U.S. person.  
Percentage interest. Include the foreign partner's  
percentage of interest in the partnership's capital and  
profits immediately after the gain deferral contribution. If  
multiple gain deferral contributions occurred during the tax  
year, enter the percentages immediately after the last gain  
deferral contribution. See Gain deferral contribution,  
earlier.  
Schedule A. Constructive Ownership  
of Partnership Interest  
All filers must complete Schedule A. Check box a if the  
person filing the return owns a direct interest in the foreign  
partnership. Check box b if the person filing the return  
constructively owns an interest in the foreign partnership.  
See Constructive ownership, earlier.  
Category 1 and 2 filers. Category 1 and 2 filers must list  
the persons (U.S. and foreign) whose interests in the  
foreign partnership they constructively owned during the  
partnership’s tax year.  
Instructions for Form 8865 (2023)  
11  
         
Schedule A-3. Affiliation Schedule  
Schedule G (Form 8865). Statement  
of Application of the Gain Deferral  
Method Under Section 721(c)  
All filers must complete Schedule A-3. List on  
Schedule A-3 all partnerships (foreign or domestic) in  
which the foreign partnership owned a direct interest, or a  
10% indirect interest (under the rules of sections 267(c)(1)  
and (5)) during the partnership tax year listed at the top of  
page 1 of Form 8865.  
A U.S. transferor uses Schedule G to comply with the  
reporting requirements that must be satisfied in applying  
the gain deferral method. If the gain deferral method is  
applied to section 721(c) property, a U.S. transferor must  
file Schedule G for the tax year of a gain deferral  
contribution, as well as for each subsequent tax year to  
which the gain deferral method is applied to section  
721(c) property, even if the gain deferral contribution for  
that property occurred before 2018. See Regulations  
sections 1.721(c)-6(b)(2) and (3). See Gain deferral  
property, earlier.  
Category 1 filers. Only Category 1 filers must complete  
the Total ordinary income or loss column. In that column,  
report the foreign partnership's share of ordinary income  
(even if not received) or loss from partnerships in which  
the foreign partnership owns a direct interest. The total  
amount of ordinary income or loss from each partnership  
must also be included on Schedule B, line 4.  
Schedule B. Income  
Statement—Trade or Business  
Income  
Important: All Category 1 filers in partnerships engaged  
in a domestic or foreign trade or business must complete  
Form 8865, Schedule B.  
If the partnership is a section 721(c) partnership and  
the gain deferral method is applied, Schedule B must  
include any remedial items for section 721(c) property,  
including an offsetting remedial item relating to  
contributed section 197(f)(9) property. See Regulations  
sections 1.704-3(d) and 1.704-3(d)(5)(iii). The total net  
amount of remedial allocations should be included on  
line 7, Other income (loss). Attach a detailed statement  
describing the remedial items allocated to each partner  
during the tax year for section 721(c) property. See  
Regulations section 1.721(c)-3. See Section 721(c)  
method, earlier.  
Filing Year  
Check the box for “Tax year of gain deferral contribution” if  
your tax year is a year in which a gain deferral contribution  
occurred (a gain deferral contribution year). Check the  
“Annual reporting” box if a gain deferral contribution  
occurred in a year prior to the current tax year and, in the  
current tax year, the gain deferral method applies to  
section 721(c) property contributed in the prior gain  
deferral contribution (an annual reporting year). If the tax  
year is both a gain deferral contribution year and an  
annual reporting year, both boxes should be checked.  
General Instructions  
On Schedule G, information must be provided for section  
721(c) property that was (a) contributed to the partnership  
in a gain deferral contribution that occurred during the  
current tax year; or (b) contributed to the partnership in a  
gain deferral contribution that occurred during a prior tax  
year, provided that the gain deferral method is applied to  
the property in the current tax year. Collectively, section  
721(c) property for which information must be reported on  
Schedule G is referred to as “reportable section 721(c)  
properties.See Section 721(c) property, earlier.  
Specific Instructions for Schedule B  
For specific instructions for Form 8865, Schedule B, use  
the instructions for Form 1065, lines 1a through 21  
(income and deductions).  
In Parts I through V, information must be provided on a  
property-by-property basis. In Part I, reportable section  
721(c) properties and accompanying information must be  
listed in descending order of FMV (measured at the time  
of contribution). Thus, the reportable section 721(c)  
property with the highest FMV should be listed on line 1,  
the reportable section 721(c) property with the second  
highest FMV should be listed on line 2, and so on.  
In Parts II through IV, the line on which information is  
provided for a reportable section 721(c) property must  
correspond to the line on which the property is listed in  
Part I. Thus, in Parts II through IV, line 1 corresponds to  
Part I, line 1, and line 2 corresponds to Part I, line 2, and  
so on.  
If there are more than four reportable section 721(c)  
properties, in Parts I through IV, attach a statement using  
the same format as in Parts I through IV, listing properties,  
or information for properties, in the same manner as  
described in the preceding two paragraphs. For example,  
the first line on the statement for Part I must be labeled “5”  
and contain columns with the same information as those  
You can view or download the Instructions for  
Form 1065 at IRS.gov/Form1065. Also, these  
instructions can be ordered by calling  
TIP  
800-829-3676 (800-TAX-FORM).  
Schedule D. Capital Gains and Losses  
Important: All Form 8865 Category 1 filers in  
partnerships having partnership items described in the  
Instructions for Schedule D (Form 1065), Capital Gains  
and Losses, must complete that schedule.  
You can view or download the Schedule D (Form  
1065) and the Instructions for Schedule D (Form  
TIP  
1065) at IRS.gov/ScheduleD(Form1065). Also,  
the form and its instructions can be ordered by calling  
800-829-3676 (800-TAX-FORM).  
12  
Instructions for Form 8865 (2023)  
       
in Part I, and must list the reportable section 721(c)  
property with the fifth-highest FMV. The statements for  
Parts I through IV may be combined in a single attached  
statement, provided that the format described above is  
followed.  
721(c) property listed, check “Yes” on the corresponding  
line in Part V of Schedule G and complete Schedule H.  
See the Part V instructions below.  
Part II. Remaining Built-in Gain, Remedial  
Income, and Gain Recognition  
A U.S. transferor should complete and file only one  
Schedule G for each partnership. See U.S. transferor,  
earlier.  
Provide the requested information for each reportable  
section 721(c) property. See General Instructions under  
Schedule G, earlier, for the order in which properties must  
be listed and when an attached statement can and must  
be used. On line 4a, provide the total amounts in each  
column for all reportable section 721(c) property, including  
property listed on an attached statement.  
Part I. Section 721(c) Property  
Provide the requested information for each reportable  
section 721(c) property. See General Instructions under  
Schedule G above for the order in which properties must  
be listed and when an attached statement can and must  
be used. If there are more than four reportable section  
721(c) properties, enter on line 4a the following  
information for the reportable section 721(c) properties  
listed on the attached statement.  
Column (a). Remaining built-in gain at beginning of  
tax year. For a reportable section 721(c) property, enter  
the amount of remaining built-in gain at the beginning of  
the tax year. If the property was contributed in the current  
tax year, enter the property’s built-in gain on the date of  
the contribution (Part I, column 6(c)).  
Column (b). Remaining built-in gain at end of tax  
year. For a reportable section 721(c) property, enter the  
amount of remaining built-in gain at the end of the tax  
year, figured under the gain deferral method.  
1. In columns 6(a) through 6(c), provide the aggregate  
FMV, basis, and built-in gain, respectively, of the  
properties.  
2. Check the boxes in columns 4, 5, and 7(a)–(e) if  
applicable to any of the properties.  
Column (c). Remedial income allocated to the U.S.  
transferor. For a reportable section 721(c) property,  
enter the remedial income allocated to the U.S. transferor  
under the remedial allocation method. When the gain  
deferral method applies to a section 721(c) property, the  
partnership must use the remedial allocation method  
described in Regulations section 1.704-3(d) for the  
property. See Regulations section 1.721(c)-3(b)(1)(i)(A).  
Column (d). Gain recognized due to acceleration  
event. For a reportable section 721(c) property, enter the  
amount of built-in gain taken into account by reason of an  
acceleration event or partial acceleration event. See  
Regulations sections 1.721(c)-4 and 1.721(c)-5 for events  
constituting an acceleration event or partial acceleration  
event and for the consequences of such events.  
Column (e). Gain recognized due to section 367  
transfer. For a reportable section 721(c) property, enter  
the amount of gain recognized by the U.S. transferor  
pursuant to Regulations section 1.721(c)-5(e) (regarding  
transfers, including indirect transfers, described in section  
367 of section 721(c) property to a foreign corporation).  
Gain recognized under section 367 should not be  
included in column 5. Instead, column 5 should list only  
the amount of gain recognized pursuant to Regulations  
section 1.721(c)-5(e) (requiring the U.S. transferor to  
recognize an amount of gain equal to the remaining  
built-in gain (if any) that would have been allocated to the  
U.S. transferor if the partnership had sold the remaining  
portion of the property immediately before the transfer for  
FMV).  
Don’t complete line 4a if there are four or fewer  
reportable section 721(c) properties.  
!
CAUTION  
Note. Schedule O, Transfer of Property to a Foreign  
Partnership, may need to be completed if, during the tax  
year, the U.S. transferor contributed property (including  
section 721(c) property) to the partnership. See the  
Schedule O instructions, later.  
Column 4. Section 197(f)(9) property. Check the box  
for the reportable section 721(c) property if the property is  
an intangible described in section 197(f)(9).  
Column 5. Effectively connected income property.  
Check the box for the reportable section 721(c) property if  
(a) all distributive shares of income and gain with respect  
to the property for all direct and indirect partners that are  
related foreign persons for the U.S. transferor will be  
subject to taxation as income effectively connected with a  
trade or business within the United States (under section  
871 or 882), and (b) neither the section 721(c) partnership  
nor a related foreign person that is a direct or indirect  
partner in the partnership claims benefits under an income  
tax convention that would exempt the income or gain from  
tax or reduce the rate of taxation to which the income or  
gain is subject. See Regulations sections 1.721(c)-3(b)(1)  
(ii) and 1.721(c)-6(c)(1).  
Column 6(a). Fair market value. Enter the FMV of the  
reportable section 721(c) property, measured as of the  
date of contribution.  
Column 6(b). Basis. Enter the adjusted tax basis of the  
reportable section 721(c) property on the date of the  
contribution. See sections 1011 through 1016 for more  
information for the determination of adjusted tax basis.  
Column 7. Events. Check the box for each of columns  
7(a) through 7(e) which describes an event that occurred  
during the tax year for the reportable section 721(c)  
property. If a box is checked for any reportable section  
Part III. Allocation Percentages of Partnership  
Items With Respect to Section 721(c) Property  
For each reportable section 721(c) property, enter the  
percentage of income, gain, deduction, and loss allocated  
to the U.S. transferor, related domestic partners, and  
related foreign partners. See General Instructions under  
Schedule G, earlier, for the order in which properties must  
Instructions for Form 8865 (2023)  
13  
be listed and when an attached statement can and must  
be used. See section 267(b) or 707(b)(1) for rules on  
determining related partners, and see Regulations section  
1.721(c)-3(c) for a rule requiring that the partnership apply  
the consistent allocation method when the gain deferral  
method applies.  
Schedule H (Form 8865). Acceleration  
Events and Exceptions Reporting  
Relating to Gain Deferral Method  
Under Section 721(c)  
If the gain deferral method is being applied to reportable  
section 721(c) property, complete and file Schedule H to  
report certain events related to the section 721(c)  
property. See Regulations sections 1.721(c)-4 and -5 for  
more information. Complete a separate Schedule H for  
each partnership.  
Part IV. Allocation of Items to U.S. Transferor  
With Respect to Section 721(c) Property  
For each reportable section 721(c) property, enter the  
amount (both book and tax) of income, gain, deduction,  
and loss allocated to the U.S. transferor under the gain  
deferral method. See General Instructions under  
Schedule G, earlier, for the order in which properties must  
be listed and when an attached statement can and must  
be used. In addition, a description of any tax item or  
regulatory allocation for a reportable section 721(c)  
property that is allocated to the U.S. transferor must be  
included in Part VI, Supplemental Information.  
General instructions. Complete all Parts of Schedule H  
that correspond to the box or boxes checked in  
Schedule G, Part I, column 7, and the related line on Part  
V checked “Yes.If additional lines are needed to report  
the information required in Parts I through V, attach a  
statement in the same format as the format used in the  
Part, in Part VI, Supplemental Information. See Section  
721(c) property, earlier.  
For Parts I–III and V, enter in column (a) the line number  
for the section 721(c) property from Schedule G, Part I. If  
the impacted section 721(c) property is listed on an  
attached statement to Schedule G, Part I, enter the line  
number from the attached statement on which that  
property was identified.  
Part V. Additional Information  
Part V provides questions relating to whether certain  
events have occurred in the current tax year for one or  
more reportable section 721(c) properties and information  
relating to treaty benefits. Such events include:  
Acceleration events (see Regulations section  
1.721(c)-4),  
Partial acceleration events (see Regulations section  
1.721(c)-5(d)),  
Termination events (see Regulations section  
Part I. Acceleration Event  
Acceleration event. An acceleration event is any event  
that either would reduce the amount of the remaining  
built-in gain that a U.S. transferor would have recognized  
under the gain deferral method if the event had not  
occurred or could defer the recognition of the remaining  
built-in gain. Acceleration events are applicable on a  
property-by-property basis. An acceleration event  
includes the transfer of section 721(c) property by making  
a contribution of the property itself to another partnership  
or the contribution of an interest in a section 721(c)  
partnership to another partnership. When an acceleration  
event occurs for a section 721(c) property, the U.S.  
transferor must recognize gain in an amount equal to  
remaining built-in gain in the property that would have  
been allocated to the U.S. transferor if the section 721(c)  
partnership had sold the section 721(c) property  
1.721(c)-5(b)),  
Successor events involving a successor partnership or  
U.S. transferor (see Regulations section 1.721(c)-5(c)),  
Taxable disposition of a portion of an interest in a  
partnership (see Regulations section 1.721(c)-5(f)), and  
Direct or indirect transfer of section 721(c) property to a  
foreign corporation subject to section 367 (see  
Regulations section 1.721(c)-5(e)).  
Lines 1 through 6b. If the answer is “Yes” to any of the  
questions on lines 1 through 6b of Part V, also complete  
and attach Schedule H (Form 8865). See the separate  
instructions later for Schedule H. In addition, the  
corresponding checkboxes in Part I, columns 7(a) through  
7(e), should be marked, as applicable.  
Line 7a. If the answer is “Yes,attach to Form 8865 a  
copy of the waiver of treaty benefits for the reportable  
section 721(c) property. See Regulations sections  
1.721(c)-6(b)(2)(iii) and 1.721(c)-6(c).  
immediately before the acceleration event for FMV.  
Following the event, the gain deferral method no longer  
applies to that section 721(c) property. See Regulations  
section 1.721(c)-4 for rules relating to acceleration events.  
At any time, a U.S. transferor may affirmatively treat an  
acceleration event as having occurred (a deemed  
acceleration event) for a section 721(c) property by both  
recognizing the remaining built-in gain in that section  
721(c) property and satisfying the reporting requirements  
of the acceleration event. See Regulations section  
1.721(c)-4(b)(4).  
Column (b). Provide a description of the acceleration  
event, including the citation in the case of a partial or  
deemed acceleration event. See Regulations section  
1.721(c)-6(b)(3)(iv). Use Part VI if additional space is  
needed to describe the transaction.  
Part VI. Supplemental Information  
Information to be reported. When providing any  
information in Part VI, indicate the Part, Part column, and  
line for which the information is provided.  
Additional Part rows. If an attached statement is used in  
Parts I through IV, include the statement “Additional  
Section 721(c) Property statement(s) is/are attached” in  
the area provided in Part VI.  
Other information. Use the Supplemental Information  
section to provide any additional information required by  
Regulations section 1.721(c)-6 that isn’t captured in Parts  
I through IV above.  
14  
Instructions for Form 8865 (2023)  
 
events, a domestic corporation becomes the successor  
U.S. transferor. In other successor events, a partnership  
becomes the successor section 721(c) partnership. A  
successor section 721(c) partnership may be a new,  
upper-tier, or lower-tier partnership. The identifying  
information must include the name, address, and U.S.  
taxpayer identification number (TIN), if any, of the  
successor U.S. transferor or successor section 721(c)  
partnership.  
Column (d). Enter the amount of the gain recognized by  
the U.S. transferor for the section 721(c) property resulting  
from the acceleration event.  
Column (e). Enter the amount that the section 721(c)  
partnership will increase its basis in the section 721(c)  
property as a result of the acceleration event. See  
Regulations sections 1.721(c)-4(c)(2) and 1.721(c)-5(d) in  
the case of a partial acceleration event.  
Column (f). Check the box if there is a partial  
Part IV. Taxable Disposition of a Portion of an  
Interest in Partnership Event  
acceleration event and the U.S. transferor recognizes a  
partial gain for the section 721(c) property. Certain  
distributions of other partnership property to a partner that  
result in an adjustment under section 734 to the section  
721(c) property constitute a partial acceleration event  
requiring that the U.S. transferor recognize gain. If there is  
a remaining built-in gain in the section 721(c) property  
immediately after the partial acceleration event, the gain  
deferral method must continue to apply and the U.S.  
transferor is required to continue to report the information  
on Schedule G for that property. See Regulations section  
1.721(c)-5(d).  
Part IV reports the information relating to a fully taxable  
disposition of a portion of an interest in a section 721(c)  
partnership. Complete this Part if a U.S. transferor or a  
partnership in which a U.S. transferor is a direct or indirect  
partner disposes of (directly or indirectly through one or  
more partnerships) a portion of an interest in a section  
721(c) partnership in a transaction in which the gain or  
loss, if any, is recognized. This will not be an acceleration  
event for the portion of the interest transferred. The gain  
deferral method will continue to apply for the section  
721(c) property of the section 721(c) partnership. The  
rules of Regulations section 1.704-3(a)(7) are applied to  
determine the remaining built-in gain in the section 721(c)  
property on a property-by-property basis that is  
Part II. Termination Event  
A termination event causes the gain deferral method to no  
longer apply for the affected section 721(c) property on a  
property-by-property basis. Regulations section  
1.721(c)-5(b) identifies the termination events.  
attributable to the portion of the interest in the section  
721(c) partnership is retained. See Regulations section  
1.721(c)-5(f).  
Column (b). Provide a description of the termination  
event, including the citation to the relevant paragraph in  
Regulations section 1.721(c)-5(b). See Regulations  
section 1.721(c)-6(b)(3)(v). Use Part VI if additional space  
is needed to describe the transaction.  
Column (a). Provide a description of the disposition of  
the interest in the partnership, including whether the  
interest was a direct or indirect interest (through one or  
more partnerships). If more than one taxable disposition  
event occurs in the tax year, provide the required  
information for each event separately in Part IV in  
chronological date order. If additional space is needed,  
provide the information in Part VI.  
Column (c). Enter the percentage of partnership interest  
that was disposed of in the event to which all gain or loss,  
if any, is recognized.  
Column (d). Enter the percentage of the partnership  
interest (directly or indirectly through one or more  
partnerships) that the U.S. transferor retained immediately  
after the event.  
Column (e). Enter the aggregate amount of the  
remaining built-in gain for all of the section 721(c)  
properties that is attributable to the portion of the interest  
in the section 721(c) partnership that is retained. Attach a  
detailed supporting schedule to Schedule H that  
separately states each remaining section 721(c) property  
and its respective remaining built-in gain allocable to the  
U.S. transferor included in the aggregate amount reported  
in column (e).  
Part III. Successor Event  
A successor event allows for the continued application of  
the gain deferral method for the affected section 721(c)  
property on a property-by-property basis by a successor  
U.S. transferor or a successor section 721(c) partnership.  
However, if the successor doesn’t continue the gain  
deferral method, the event is an acceleration event and  
must be reported in Part I above. Successor events are  
applicable on a property-by-property basis. If only a  
portion of an interest in a partnership is transferred in a  
successor event, the rules of Regulations section  
1.704-3(a)(7) are applied to determine the remaining  
built-in gain in the section 721(c) property that is  
attributable to the portion of the interest that is transferred  
and the portion that is retained. Regulations section  
1.721(c)-5(c) identifies the successor events, including  
special rules for transactions involving tiered partnerships.  
If more than one successor event occurs in the tax  
year, provide the required information for each event  
separately in Part IV in chronological date order.  
Column (b). Provide a description of the successor  
event, including the citation to the relevant paragraph in  
Regulations section 1.721(c)-5(c). See Regulations  
section 1.721(c)-6(b)(3)(v). Use Part VI if additional space  
is needed to describe the transaction.  
Part V. Section 367 Transfer Event  
Part V reports the information relating to a transfer  
described in section 367 of section 721(c) property to a  
foreign corporation. See Regulations section  
1.721(c)-5(e). Section 367 events include:  
Transfer of section 721(c) property by a section 721(c)  
Column (d). Enter the identifying information of the  
partnership to a foreign corporation, or  
relevant successor, as applicable. In certain successor  
Instructions for Form 8865 (2023)  
15  
Transfer by a U.S. transferor or a partnership in which a  
Information, provide the information in an attachment or  
attachments to Schedule H in the same format as required  
for the row on the Part at issue. If separate supplemental  
schedules are used for any Part of Schedule H for specific  
section 721(c) properties, use the same corresponding  
identification line number from the Part I of Schedule G for  
such property on the supplemental schedule for  
Schedule H.  
Other information. Use the Supplemental Information  
section to provide any additional information required by  
Regulations section 1.721(c)-6 that isn’t reported in Parts I  
through V above.  
U.S. transferor is a direct or indirect partner transfers  
(directly or indirectly through one or more partnerships) all  
or a portion of the section 721(c) partnership that owns  
section 721(c) property to a foreign corporation.  
As a result of the section 367 event, the section 721(c)  
property is no longer subject to the gain deferral method.  
The U.S. transferor is treated as transferring the section  
721(c) property to a foreign corporation and is subject to  
taxation on the transfer under section 367. See the section  
367 regulations for rules relating to gain or income  
recognition under section 367.  
Note. A transfer of property to a foreign corporation by a  
U.S. transferor is subject to other reporting requirements  
under sections 367, 351, 368, and 6038B (for example,  
the filing of Form 926), as applicable. See the related  
regulations under these Code sections. Such reporting  
requirements are in addition to the filing of Schedule H.  
After considering the tax consequences under section  
367, the remaining built-in gain, if any, for the section  
721(c) property is recognized by the U.S. transferor to the  
extent that would have been allocated to the U.S.  
transferor had the section 721(c) partnership sold that  
portion of the property immediately before the transfer for  
FMV.  
Column (b). Provide a description of the section 367  
transfer, including whether the transfer was a direct or  
indirect transfer (through one or more partnerships) of  
section 721(c) property to a foreign corporation. If more  
than one section 367 transfer occurs in the tax year,  
provide the required information for each transfer  
separately in Part IV in chronological date order. If  
additional space is needed, provide the information in Part  
VI.  
Schedules K, Partners' Distributive  
Share Items, and K-1 (Form 8865),  
Partner’s Share of Income,  
Deductions, Credits, etc.  
Schedule K  
Form 8865, Schedule K, is a summary schedule of all of  
the partners' shares of the partnership income, credits,  
deductions, etc. Only Category 1 filers must complete  
Form 8865, Schedule K.  
Schedule K-1  
Schedule K-1 (Form 8865) is used to report a specific  
partner's share of the partnership income, deductions,  
credits, etc.  
All Category 1 and 2 filers must complete Schedule K-1  
(Form 8865) for any direct interest they hold in the  
partnership. A Category 1 or 2 filer that doesn’t own a  
direct interest is not required to complete Schedule K-1  
(Form 8865).  
Column (d). Enter the amount of the remaining portion of  
built-in gain recognized by the U.S. transferor under  
section 721(c). The amount of gain equals the remaining  
portion of the built-in gain that would have been allocated  
to the U.S. transferor if the section 721(c) partnership had  
sold that portion of the section 721(c) property  
Category 1 filers must also complete Schedule K-1  
(Form 8865) for each U.S. person that directly owns a  
10% or greater direct interest in the partnership.  
Provide the partner's beginning and year-end  
percentage interests in partnership profits, losses, capital,  
or deductions. These percentages should include any  
interest constructively owned by the filer.  
immediately before the transfer for FMV. This amount  
should not include any gain or income recognized by the  
U.S. transferor pursuant to section 367 that is reported  
elsewhere on the return. See Regulations section  
1.721(c)-5(e). After the section 367 transfer, the  
transferred section 721(c) property will no longer be  
subject to the gain deferral method.  
Column (e). Enter the identifying information of the  
foreign transferee corporation that received the section  
721(c) property in the section 367 transfer. The identifying  
information includes the name, address, and U.S.TIN, if  
any.  
Complete boxes 1 through 21 for any direct interest that  
the partner owns in the partnership.  
Example. Partner A owns a 45% direct interest in a  
foreign partnership (FPS). Partner A also owns 100% of  
the stock of a domestic corporation (DC), which owns a  
10% direct interest in FPS. Therefore, Partner A is  
considered to own a 55% interest in FPS and is thus a  
Category 1 filer. When Partner A completes Schedule K-1  
(Form 8865) for itself, Partner A must report the  
distributive share of items allocated to Partner A's direct  
interest of 45% but not any items allocated to DC's 10%  
interest. When Partner A completes Schedule K-1 (Form  
8865) for DC (which Partner A must do because DC owns  
a direct 10% interest), Partner A must report on DC's  
Schedule K-1 (Form 8865) only items allocated to DC's  
direct 10% interest.  
Part VI. Supplemental Information  
Information to be reported. When providing any  
information in the Supplemental Information, indicate the  
Part, Part column, row, and line for which the information is  
provided.  
Additional Part rows. If additional rows are needed to  
Although the partnership isn’t subject to income tax, the  
partners are liable for tax on their shares of the  
enter information in Parts I through V in the Supplemental  
16  
Instructions for Form 8865 (2023)  
 
partnership income, whether or not distributed, and must  
include their share of such items on their tax returns.  
method, earlier.  
Codes. In box 11 and boxes 13 through 21, identify each  
item by entering a code in the column to the left of the  
dollar amount entry space. These codes are identified in  
For Box 11—Code ZZ. Other, see Other code ZZ in the  
Instructions for Form 1065.  
Attached statements. When attaching statements to  
Schedule K-1 to report additional information to the  
partner, indicate there is a statement for the following.  
Allocations of income, gains, losses, deductions, or  
credits among the partners should generally be made  
according to the partnership agreement. See section 704  
and the regulations thereunder.  
Schedule K-1 (Form 8865) for related foreign part-  
ners. If the gain deferral method is applied and a section  
721(c) partnership doesn’t have a filing obligation under  
section 6031, the U.S. transferor must obtain a  
Schedule K-1 (Form 8865) for each direct or indirect  
partner that is related to the U.S. transferor (within the  
meaning of section 267(b) or 707(b)(1)) and that isn’t a  
U.S. person (related foreign partner). See Regulations  
section 1.721(c)-6(c)(3). The Schedule K-1 (Form 8865)  
for each related foreign partner must be filed and attached  
to the Form 8865 as part of the annual reporting relating to  
the gain deferral method pursuant to Regulations section  
1.721(c)-6(b)(3)(xi). The instructions that apply to  
Schedule K-1 (Form 8865) for all other partners also apply  
to a Schedule K-1 (Form 8865) for a related foreign  
partnership, and U.S. transferor, earlier.  
If an amount can be input on Schedule K-1 but  
additional information is required, enter an asterisk (*)  
after the code in the column to the left of the entry space.  
For items that can't be reported as a single dollar  
amount, enter the code and an asterisk (*) in the column  
to the left and enter “STMT” in the right column to indicate  
that the information is provided on an attached statement.  
If the partnership has more coded items than the  
number of entry boxes (for example, boxes 11 and 13  
through 15, or boxes 17 through 21), don't enter a code or  
dollar amount in the last entry box. Instead, enter an  
asterisk (*) in the left column and enter “STMT” in the  
entry space to the right.  
More than one attached statement can be placed on  
the same sheet of paper. The information included in the  
statement should be identified in alphanumeric order by  
box number followed by the letter code (if any),  
General Reporting Instructions for Schedule K-1  
(Form 8865)  
On each Schedule K-1 (Form 8865), enter the information  
about the partnership and the partner in Parts I and II  
(items A through F). For Schedule K-1 (Form 8865), items  
E and F, see the instructions for the corresponding  
Schedule K-1 (Form 1065), items J and L, in the  
Instructions for Form 1065 under Specific Instructions  
(Schedule K-1 only). In Part III, enter the partner's  
distributive share of each item of income, deduction, and  
credit and any other information the partner needs to  
prepare the partner's tax return.  
description, and dollar amount for each item. For example:  
“Box 15, code J—Work opportunity credit—$1,000.This  
can be followed with any additional information the partner  
needs to determine the proper tax treatment of the item.  
Specific Instructions for Schedules K and K-1  
For the specific instructions for Form 8865, Schedule K,  
and Schedule K-1 (Form 8865), see the Instructions for  
Form 1065.  
If the partnership is a section 721(c) partnership,  
box 20 (code AL—Section 721(c) partnership) of  
Schedule K-1, Part III, must include the amounts relating  
to any remedial items made under the remedial allocation  
method (described in Regulations sections 1.704-3(d) and  
1.704-3(d)(5)(iii)) for section 721(c) property. For the  
specific partner's information relating to the remedial  
method allocations and gain deferral method, see the  
Instructions for Form 1065, especially the Partner's  
Instructions for Schedule K-1 (Form 1065).  
Line 16. If the partnership had items of international tax  
relevance, see the Instructions for Schedules K-2 and K-3  
(Form 8865) to determine if you need to check the box  
and attach Schedules K-2 and K-3.  
Item A2  
Enter the reference ID number used on Form 8865, item  
G2(b). For details, see Item G2(b), earlier.  
Part III—line 1. If the gain deferral method is applied to  
which the section 721(c) partnership adopts the remedial  
allocation method, the amounts reflected on each  
partner's Schedule K-1 for the allocations of income,  
gains, losses, deductions, or credits allocated to such  
partner must include any allocations of remedial items for  
section 721(c) property. See Regulations section  
1.721(c)-3(c).  
For example, if the partner is the U.S. transferor of  
section 721(c) property, Part III, line 1, would include any  
remedial income allocated to the U.S. transferor from  
Schedule G, Part II, column (c), Remedial income  
allocated to U.S. transferor, as applicable. For partners  
other than the transferor, Part III, line 1, would include their  
share of ordinary business income (or loss) after taking  
into account any remedial items to such partner relating to  
section 721(c) property. However, Part III, line 1, would not  
include basis adjustments attributable to section 197(f)(9)  
for related foreign partners. See Regulations sections  
1.704-3(d)(5)(iii) and 1.721(c)-3. See Section 721(c)  
Instructions for Form 8865 (2023)  
17  
   
page 1 of Form 8865, you don’t have to complete Form  
8865, Schedule M-1.  
Schedules K-2 (Form 8865), Partners’  
Distributive Share  
Specific Instructions for Schedule M-1  
For the specific instructions for Schedule M-1 (Form  
8865), see the Instructions for Form 1065.  
Items—International, and K-3 (Form  
8865), Partner’s Share of Income,  
Deductions, Credits,  
Schedule M-2. Analysis of Partners'  
Capital Accounts  
etc.—International  
Schedule K-2  
Schedule K-2 (Form 8865) is an extension of Schedule K  
of the Form 8865 and is used to report items of  
international tax relevance from the operation of a  
partnership.  
Only Category 1 filers are required to complete Form  
8865, Schedule M-2. If you answered "Yes" to item H11 on  
page 1 of Form 8865, you don’t have to complete Form  
8865, Schedule M-2.  
Specific Instructions for Schedule M-2  
For the specific instructions for Form 8865, Schedule M-2,  
see the Instructions for Form 1065.  
Schedule K-3  
Schedule K-3 (Form 8865) is an extension of  
Schedule K-1 (Form 8865) and is generally used to report  
the partner’s share of the items reported on Schedule K-2.  
The information reported on Schedule K-3 is used to  
report information on a partner’s tax or information returns.  
Schedule N. Transactions Between  
Controlled Foreign Partnership and  
Partners or Other Related Entities  
For more information, see the Instructions for  
Schedules K-2 and K-3 (Form 8865).  
All Category 1 filers must complete Schedule N and report  
all transactions of the foreign partnership during the tax  
year of the partnership listed on the top of Form 8865,  
page 1. A Category 1 filer filing a Form 8865 for other  
Category 1 filers under the multiple Category 1 filers  
exception must complete a Schedule N for itself and a  
separate Schedule N for each Category 1 filer not filing  
Form 8865.  
Schedule L. Balance Sheets per  
Books  
The balance sheets should agree with the partnership's  
books and records. Attach a statement explaining any  
differences.  
Category 2 filers are required to complete columns (a),  
(b), and (c) of Schedule N. Category 2 filers don’t have to  
complete column (d).  
Only Category 1 filers are required to complete Form  
8865, Schedule L.  
If you answered "Yes" to item H11 on page 1 of Form  
8865, you do not have to complete Form 8865,  
Schedule L.  
Column (a). Use column (a) to report transactions  
between the foreign partnership and the person filing the  
Form 8865.  
Column (d). Use column (d) to report transactions  
between the foreign partnership and any U.S. person with  
a 10% or more direct interest in the foreign partnership. If  
such person also qualifies under column (b), don’t report  
transactions between the foreign partnership and that  
person under column (d). Report the transactions only  
under column (b).  
Lines 6 and 16. Enter distributions received from other  
partnerships and distributions from the foreign partnership  
for which this form is being completed.  
Lines 20 and 21. Enter the largest outstanding balances  
during the tax year of gross amounts borrowed from, and  
gross amounts lent to, the related parties described in  
columns (a) through (d). Don’t enter aggregate cash flows,  
year-end loan balances, average balances, or net  
balances. Don’t include open account balances resulting  
from sales and purchases reported under other items  
listed on Schedule N that arise and are collected in full in  
the ordinary course of business.  
Schedule L requires balance sheets prepared and  
translated into U.S. dollars in accordance with U.S.  
generally accepted accounting principles (GAAP).  
Exception. Generally, if the partnership or any QBU of  
the partnership uses the dollar approximate separate  
transactions method (DASTM), Form 8865, Schedule L,  
should reflect the tax balance sheets prepared and  
translated into U.S. dollars according to Regulations  
section 1.985-3(d).  
Specific Instructions for Schedule L  
For the specific instructions for Form 8865, Schedule L,  
see the Instructions for Form 1065.  
Schedule M-1. Reconciliation of  
Income (Loss) per Books With  
Income (Loss) per Return  
Form 8865 filers aren’t required to complete Schedule M-3  
(Form 1065), Net Income (Loss) Reconciliation for Certain  
Partnerships.  
Only Category 1 filers are required to complete Form  
8865, Schedule M-1. If you answered "Yes" to item H11 on  
18  
Instructions for Form 8865 (2023)  
         
(1)(i). For an exception for certain property generating  
effectively connected income, see Regulations section  
1.721(c)-3(b)(1)(ii).  
Column (g). Enter the amount of gain, if any, recognized  
on the transfer. See sections 721(b) and 904(f)(3), and  
Regulations section 1.721(c)-2.  
Line 3. Enter your capital interests, by percentage, in the  
partnership immediately before and after the transfer. To  
the extent your capital interest in the partnership  
immediately before the transfer differs from any of your  
profit, loss, or deduction interests in the partnership at that  
time, enter in the supplemental information below your  
interests, by percentage, in the profit, loss, and deductions  
at that time. To the extent your capital interest in the  
partnership immediately after the transfer differs from any  
of your profit, loss, or deduction interests in the  
Schedule O (Form 8865). Transfer of  
Property to a Foreign Partnership  
Category 3 filers must complete Schedule O.  
Section 721(c) partnerships. Regulations section  
1.721(c)-2 overrides section 721(a) nonrecognition of gain  
upon a contribution of section 721(c) property to a section  
721(c) partnership occurring on or after August 6, 2015. A  
U.S. transferor must recognize gain unless the gain  
deferral method described in Regulations section  
1.721(c)-3 is applied. To satisfy the reporting requirements  
of the gain deferral method, the U.S. transferor is required  
to report certain information for the year of the contribution  
and for subsequent years. See Regulations section  
earlier.  
partnership at that time, enter in the supplemental  
information below your interests, by percentage, in the  
profit, loss, and deductions at that time.  
Supplemental information required to be reported.  
Enter any information from Part I that is required to be  
reported in greater detail. Identify the applicable column  
number next to the information entered in this section. In  
addition, if you contributed property to a foreign  
partnership as part of a wider transaction, briefly describe  
the entire transaction.  
Reporting required for the year of contribution to  
which the gain deferral method is applied.  
Additionally, describe any section 721(c) property  
contributed to a section 721(c) partnership and identify  
whether the gain deferral method is applied. A U.S.  
transferor must attach to Form 8865, for the year of  
contribution, Schedule G, containing the information  
described in Regulations section 1.721(c)-6(b)(2)(i). See  
Regulations section 1.721(c)-6(b) for additional  
requirements.  
Additional form and statement requirements. In  
addition to the reporting requirements above, the following  
statements and forms must also be filed to satisfy the  
requirements for the gain deferral method.  
Reference ID number. Use the reference ID number  
shown on Form 8865, item G2(b). For details, see Item  
G2(b), earlier.  
Part I. Transfers Reportable Under Section  
6038B  
Part I is used to report the transfer of property to a foreign  
partnership in accordance with Regulations section  
1.6038B-2(c). The completion of Part l (related property  
transferred to the partnership) is required by Regulations  
section 1.6038B-2(c). Provide the information required in  
columns (a) through (g) for each contribution of property  
to the foreign partnership that must be reported. If you  
contributed property with an FMV greater than its tax  
basis (appreciated property), or intangible property,  
provide the information required in columns (a) through (g)  
separately for each item of property transferred (except to  
the extent you are allowed to aggregate the property  
under Regulations sections 1.704-3(e)(2), (3), and (4)).  
Provide a general description of each item of property  
in the Supplemental Information Required To Be Reported  
section. For all other property contributed, aggregate by  
the categories listed in Part I.  
Column (a). Enter the date of the transfer. If the transfer  
was composed of a series of transactions over multiple  
dates, enter the date the transfer was completed.  
Schedule H (Form 8865), if certain events have  
occurred.  
Form 8838-P, Consent To Extend the Time To Assess  
Tax Pursuant to the Gain Deferral Method (Section  
721(c)). See Regulations sections 1.721(c)-6(b)(2)(ii), (b)  
(3)(viii), and (b)(5) for more information.  
Column (b). Enter the description of the property  
transferred.  
Copy of “Statement of Waiver of Treaty Benefits under  
Section 1.721(c)-6,if applicable. See Regulations section  
1.721(c)-6(c)(1).  
Column (c). Enter the FMV of the property contributed  
(measured as of the date of the transfer).  
Column (d). Enter your adjusted basis in the property  
contributed on the date of the transfer. See sections 1011  
through 1016 for more information on the determination of  
adjusted basis.  
Column (f). If you contributed appreciated property,  
enter the method (traditional, traditional with curative  
allocations, or remedial) used by the partnership to make  
section 704(c) allocations for each item of property. See  
Regulations sections 1.704-3(b), (c), and (d) for more  
information on these allocation methods. If the gain  
deferral method is applied, the remedial method must  
generally be used. See Regulations section 1.721(c)-3(b)  
Annual Reporting With Respect to the Gain  
Deferral Method  
A U.S. transferor subject to the gain deferral method must  
annually attach Schedule G (Form 8865), containing the  
information required in Regulations section 1.721(c)-6(b)  
(3)(i) through (vii) (and (b)(3)(ix), as applicable). See  
Regulations section 1.721(c)-6(b)(3) for further annual  
reporting requirements pursuant to the gain deferral  
method.  
Instructions for Form 8865 (2023)  
19  
 
Part II. Dispositions Reportable Under Section  
6038B  
Column (g). Enter the amount of gain from column (e)  
allocated to you.  
Use Part II to report certain dispositions by a foreign  
partnership in accordance with Regulations section  
1.6038B-2(d). The completion of Part ll (related property  
transferred to the partnership) is required by Regulations  
section 1.6038B-2(d). If you were required to report a  
transfer of appreciated property to the partnership, and  
the partnership disposes of the property while you are still  
a direct or constructive partner, you must report that  
disposition in Part II. If the partnership disposes of the  
property in a nonrecognition transaction and receives in  
exchange substituted basis property, report the  
Column (h). Enter the amount of depreciation recapture  
from column (f) allocated to you. See Regulations sections  
1.1245-1(e) and 1.1250-1(f). If you recognize any section  
1254 recapture on the partnership's disposition of natural  
resource recapture property, enter “See Attached” and  
attach a statement figuring the amount of recapture. See  
Regulations section 1.1254-5.  
Part III. Gain Recognition Under Section 904(f)  
(3) or (f)(5)(F)  
If gain recognition was required for any transfer reported in  
Part I under section 904(f)(3) or (f)(5)(F), attach a  
statement identifying the transfer and the amount of gain  
recognized.  
subsequent disposition of the substituted basis property in  
the same manner as provided for the contributed property.  
See section 7701(a)(42) for the definition of substituted  
basis property and Regulations section 1.704-3(a)(8) for  
more information.  
Schedule P (Form 8865).  
Acquisitions, Dispositions, and  
Changes of Interests in a Foreign  
Partnership  
A disposition by a partnership may be an acceleration  
event for purposes of applying the gain deferral method.  
The U.S. transferor may be required to recognize gain in  
an amount equal to the remaining built-in gain on the  
section 721(c) property previously contributed to the  
section 721(c) partnership. See Regulations section  
1.721(c)-4. For acceleration event exceptions, see  
Regulations section 1.721(c)-5. Acceleration events and  
exceptions to an acceleration event should be reflected on  
Part II. In addition, Schedules G and H are required to be  
filed.  
Use Schedule P to report the acquisition, disposition, and  
change of interest in a foreign partnership.  
Every Category 4 filer must complete Schedule P,  
unless they qualify under the exception for certain  
Category 4 filers, described earlier.  
Reference ID number. Use the reference ID number  
shown on Form 8865, item G2(b). For details, see Item  
G2(b), earlier.  
Column (a). Provide a brief description of the property  
disposed of by the partnership. If you are reporting the  
disposition of substituted basis property received by the  
partnership in a nonrecognition transaction in exchange  
for appreciated property contributed by you, enter “See  
Attached” and attach a statement providing brief  
Part I. Acquisitions  
Part I is completed by Category 4 filers required to report  
an acquisition of an interest in a foreign partnership. See  
Categories of Filers, earlier, for more details about which  
types of acquisitions must be reported.  
descriptions of both the property contributed by you to the  
partnership and the substituted basis property received by  
the partnership in exchange for that property.  
An acquisition of a section 721(c) partnership interest  
may be an acceleration event exception under the gain  
deferral method. In such case, Schedule H is required to  
be filed. See Regulations section 1.721(c)-5. In this case,  
the acquirer may become a successor U.S. transferor and  
may have a reporting requirement under Regulations  
section 1.721(c)-6. As a result, the successor U.S.  
transferor is required to file Schedule G as well as, if  
certain events occur, Schedule H. See Section 721(c)  
earlier.  
Column (a). If you acquired the interest in the foreign  
partnership by purchase, gift, or inheritance, or in a  
distribution from a trust, estate, partnership, or  
corporation, enter the name, address, and identifying  
number (if any) of the person from whom you acquired the  
interest.  
Column (b). Enter the date that you transferred this  
property to the partnership. If you are reporting the  
disposition of substituted basis property received by the  
partnership in a nonrecognition transaction in exchange  
for property previously contributed by you, enter “See  
Attached” and attach a statement showing both the date  
you transferred the appreciated property to the  
partnership and the date the partnership exchanged the  
property for substituted basis property in a nonrecognition  
transaction. See Regulations section 1.6038B-2.  
Column (c). Enter the date that the partnership disposed  
of the property.  
Column (d). Briefly describe how the partnership  
disposed of the property (for example, by sale or  
exchange).  
Column (e). Enter the amount of gain, if any, recognized  
by the partnership on the disposition of property.  
Column (b). Enter the date of the acquisition. If the  
acquisition was composed of a series of transactions over  
multiple dates, enter the date the acquisition was  
completed.  
Column (f). Enter the amount of depreciation recapture,  
if any, recognized by the partnership on the disposition of  
property. See Regulations sections 1.1245-1(e) and  
1.1250-1(f).  
Column (c). Enter the FMV of the interest you acquired  
in the partnership (measured as of the date of acquisition).  
20  
Instructions for Form 8865 (2023)  
 
Column (d). Enter your basis in the acquired partnership  
interest (measured as of the date of acquisition). See  
sections 722 and 742.  
Column (d). Enter your adjusted basis in the partnership  
interest disposed of immediately before the disposition.  
See section 705.  
Columns (e) and (f). Enter your total direct percentage  
interest in the partnership both before and immediately  
after the acquisition. To the extent your direct percentage  
interest in the partnership differs among capital, profits,  
losses, or deductions, enter “See Below” and state the  
different percentages in Part IV.  
Columns (e) and (f). Enter your total direct percentage  
interest in the partnership both before and immediately  
after the disposition. To the extent your percentage  
interest in the partnership differs among capital, profits,  
losses, or deductions, enter “See Below” and state the  
different percentages in Part IV.  
Part II. Dispositions  
Part III. Change in Proportional Interest  
This section is completed by U.S. persons who are  
Category 4 filers because they disposed of an interest in a  
foreign partnership. See Categories of Filers, earlier, for  
more details about what types of dispositions must be  
reported. For each disposition reported in Part II, indicate  
in Part IV whether a statement is required by Regulations  
section 1.751-1(a)(3) to be filed for the disposition.  
This section is completed by U.S. persons who are  
Category 4 filers because their direct proportional interest  
in the foreign partnership changed. See Categories of  
Filers, earlier, for more details about which changes in  
proportional interest must be reported.  
Column (a). Briefly describe the event that caused your  
interest in the partnership to change (for example, the  
admission of a new partner).  
Column (b). Enter the date of the change. If the change  
resulted from a series of transactions over multiple dates,  
enter the date the change was completed.  
A disposition of a section 721(c) partnership interest  
may be an acceleration event for purposes of applying the  
gain deferral method. The U.S. transferor may be required  
to recognize gain in an amount equal to the remaining  
built-in gain on the section 721(c) property previously  
contributed to the section 721(c) partnership. In this case,  
Schedule H must also be filed. See Regulations section  
1.721(c)-4. For acceleration event exceptions, see  
Regulations section 1.721(c)-5.  
Column (a). Unless you disposed of the interest by  
withdrawing, in whole or in part, from the partnership,  
enter the name, address, and identifying number (if any)  
of the person to whom you transferred the interest in the  
foreign partnership.  
Column (c). Enter the FMV of your interest in the  
partnership immediately before the change.  
Column (d). Enter your basis in your partnership interest  
immediately before the change.  
Columns (e) and (f). Enter your direct percentage  
interest in the partnership both before and immediately  
after the change. To the extent your percentage interest in  
the partnership differs among capital, profits, losses, or  
deductions, enter “See Below” and state the different  
percentages in Part IV.  
Column (b). Enter the date of the disposition. If the  
disposition was composed of a series of transactions over  
multiple dates, enter the date the disposition was  
completed.  
Part IV. Supplemental Information Required  
To Be Reported  
Enter any information asked for in Part I, Part II, or Part III  
that must be reported in detail. Identify the applicable part  
number and column next to the information entered in Part  
IV.  
Column (c). Enter the FMV of the interest you disposed  
of in the partnership (measured as of the date of  
disposition). If you recognized gain or loss on the  
disposition, state the amount of gain or loss in Part IV. See  
section 741.  
Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form and its schedules to carry  
out the Internal Revenue laws of the United States. We need this information to ensure that you are complying with the  
revenue laws and to allow us to figure and collect the right amount of tax. Sections 6038, 6038B, 6038D, and 6046A  
require you to provide this information. Section 6038D requires specified individuals and, upon issuance of regulations,  
specified domestic entities to report specified foreign financial assets in which they have an interest. Form 8938 is  
generally used to comply with this reporting requirement, but if you checked the box on Form 8865, item E, you're  
choosing to use Form 8865 (in conjunction with Form 8938) to report your interests. Section 6109 requires you to provide  
your identification number. Failure to provide all of the requested information in a timely manner or providing false  
information may subject you to penalties.  
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be  
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the  
IRS to disclose or give such information to the Department of Justice for civil and criminal litigation, and to cities, states,  
the District of Columbia, and U.S. commonwealths and territories for use in administering their tax laws. We may also  
disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax  
criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.  
Instructions for Form 8865 (2023)  
21  
The time needed to complete and file this form and related schedules will vary depending on individual circumstances.  
The estimated burden for individual and business taxpayers filing this form is approved under OMB control number  
1545-0074 and 1545-0123 and is included in the estimates shown in the instructions for their individual and business  
income tax return. The estimated burden for all other taxpayers who file this form is shown below.  
Learning about the law  
or the form  
Preparing, copying, assembling,  
and sending the form to the IRS  
Form  
Recordkeeping  
8865  
39 hr., 30 min.  
13 hr., 52 min.  
7 hr., 53 min.  
12 hr., 12 min.  
170 hr., 16 min.  
171 hr., 13 min.  
16 hr., 15 min.  
5 hr., 44 min.  
6 hr., 47 min.  
3 hr., 34 min.  
2 hr., 17 min.  
7 hr., 31 min.  
34 hr., 28 min.  
35 hr., 33 min.  
5 hr., 10 min.  
1 hr., 12 min.  
14 hr., 21 min.  
3 hr., 57 min.  
2 hr., 30 min.  
9 hr., 14 min.  
50 hr., 44 min.  
51 hr., 53 min.  
5 hr., 39 min.  
1 hr., 20 min.  
Schedule G (Form 8865)  
Schedule H (Form 8865)  
Schedule K-1 (Form 8865)  
Schedule K-2 (Form 8865)  
Schedule K-3 (Form 8865)  
Schedule O (Form 8865)  
Schedule P (Form 8865)  
If you have comments concerning the accuracy of these time estimates or suggestions for making this form and  
related schedules simpler, we would be happy to hear from you. You can send us comments through IRS.gov/  
FormComments. Or you can send your comments to the Internal Revenue Service, Tax Forms and Publications, 1111  
Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send Form 8865 to this address. Instead, see When and  
Where To File, earlier.  
List of Codes Used for Schedule K-1 (Form 8865)  
Box Number / Item  
Where to report or where to find further reporting information.  
1. Ordinary business income (loss). Determine whether the income (loss)  
is passive or nonpassive and enter on your return as follows.  
Passive loss  
See Partner’s Instr. (Form 1065)  
Passive income  
Schedule E (Form 1040), line 28, column (h)  
See Partner’s Instr. (Form 1065)  
Nonpassive loss  
Nonpassive income  
Schedule E (Form 1040), line 28, column (k)  
See Partner’s Instr. (Form 1065)  
2. Net rental real estate income (loss)  
3. Other net rental income (loss)  
Net income  
Schedule E (Form 1040), line 28, column (h)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Form 1040 or 1040-SR, line 2b  
Net loss  
4a. Guaranteed payment services  
4b. Guaranteed payment capital  
4c. Guaranteed payment total  
5. Interest income  
6a. Ordinary dividends  
Form 1040 or 1040-SR, line 3b  
6b. Qualified dividends  
Form 1040 or 1040-SR, line 3a  
6c. Dividend equivalents  
7. Royalties  
See Partner’s Instr. (Form 1065)  
Schedule E (Form 1040), line 4  
8. Net short-term capital gain (loss)  
9a. Net long-term capital gain (loss)  
9b. Collectibles (28%) gain (loss)  
9c. Unrecaptured section 1250 gain  
10. Net section 1231 gain (loss)  
11. Other income (loss)  
Code A. Other portfolio income (loss)  
Code B. Involuntary conversions  
Schedule D (Form 1040), line 5  
Schedule D (Form 1040), line 12  
28% Rate Gain Worksheet, line 4 (Schedule D instructions)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
22  
Instructions for Form 8865 (2023)  
   
Box Number / Item  
Code C. Section 1256 contracts & straddles  
Where to report or where to find further reporting information.  
Form 6781, line 1  
Code D. Mining exploration costs recapture  
Code E. Cancellation of debt  
See Pub. 535  
Schedule 1 (Form 1040), line 8c; or Form 982  
See Partner’s Instr. (Form 1065)  
Code F. Section 743(b) positive income adjustments  
Code G. Reserved for future use  
Code H. Section 951 income inclusions  
Code I. Gain (loss) from disposition of oil, gas, thermal, or other  
mineral properties (section 59(e))  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code J. Recoveries of tax benefit items  
Code K. Gambling gains and losses  
Code L. Any income, gain, or loss to the partnership from a  
distribution under section 751(b) (certain distributions treated as  
sales or exchanges)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code M. Gain eligible for section 1045 rollover (replacement stock  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
purchased by partnership)  
Code N. Gain eligible for section 1045 rollover (replacement stock  
not purchased by partnership)  
Code O. Sale or exchange of QSB stock with section 1202 exclusion See Partner’s Instr. (Form 1065)  
Code P. Gain or loss on disposition of farm recapture property and  
other items to which section 1252 applies  
See Partner’s Instr. (Form 1065)  
Code Q. Gain or loss on Fannie Mae or Freddie Mac qualified  
preferred stock  
See Partner’s Instr. (Form 1065)  
Code R. Specially allocated ordinary gain (loss)  
Code S. Non-portfolio capital gain (loss)  
Codes T through X. Reserved for future use  
Code ZZ. Other  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
12. Section 179 deduction  
13. Other deductions  
Code A. Cash contributions (60%)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Form 4952, line 1  
Code B. Cash contributions (30%)  
Code C. Noncash contributions (50%)  
Code D. Noncash contributions (30%)  
Code E. Capital gain property to a 50% organization (30%)  
Code F. Capital gain property (20%)  
Code G. Contributions (100%)  
Code H. Investment interest expense  
Code I. Deductions—royalty income  
Schedule E (Form 1040), line 19  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Schedule A (Form 1040), line 16  
Schedule A (Form 1040), line 1; or Schedule 1 (Form 1040), line 17  
See Partner’s Instr. (Form 1065)  
Form 2441, line 12  
Code J. Section 59(e)(2) expenditures  
Code K. Excess business interest expense  
Code L. Deductions—portfolio (other)  
Code M. Amounts paid for medical insurance  
Code N. Educational assistance benefits  
Code O. Dependent care benefits  
Code P. Preproductive period expenses  
Code Q. Reserved for future use  
See Partner’s Instr. (Form 1065)  
Code R. Pensions and IRAs  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code S. Reforestation expense deduction  
Codes T through U. Reserved for future use  
Code V. Section 743(b) negative income adjustments  
Code W. Soil and water conservation  
Code X. Film, television, and theatrical production expenditures  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Instructions for Form 8865 (2023)  
23  
Box Number / Item  
Code Y. Expenditures for removal of barriers  
Where to report or where to find further reporting information.  
See Partner’s Instr. (Form 1065)  
Code Z. Itemized deductions  
See Partner’s Instr. (Form 1065)  
Code AA. Contributions to a capital construction fund (CCF)  
Code AB. Penalty on early withdrawal of savings  
Code AC. Interest expense allocated to debt-financed distributions  
Code AD. Interest expense on working interest in oil or gas  
Code AE. Deductions—portfolio income  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Codes AF through AJ. Reserved for future use  
Code ZZ. Other  
See Partner’s Instr. (Form 1065)  
14. Self-employment earnings (loss)  
Note. If you have a section 179 deduction or any partner-level  
deductions, see the Partner’s Instr. (Form 1065) before completing  
Schedule SE (Form 1040).  
Code A. Net earnings (loss) from self-employment  
Code B. Gross farming or fishing income  
Code C. Gross non-farm income  
Schedule SE, Section A or B  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
15. Credits  
Code A. Reserved for future use  
Code B. Reserved for future use  
Code C. Low-income housing credit (section 42(j)(5)) from  
post-2007 buildings  
See Partner’s Instr. (Form 1065)  
Code D. Low-income housing credit (other) from post-2007 buildings See Partner’s Instr. (Form 1065)  
Code E. Qualified rehabilitation expenditures (rental real estate)  
Code F. Other rental real estate credits  
Code G. Other rental credits  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code H. Undistributed capital gains credit  
Code I. Biofuel producer credit  
Code J. Work opportunity credit  
Code K. Disabled access credit  
Code L. Empowerment zone employment credit  
Code M. Credit for increasing research activities  
Code N. Credit for employer social security and Medicare taxes  
Code O. Backup withholding  
Code P. Unused investment credit from the qualifying advanced coal See Partner’s Instr. (Form 1065)  
project credit or qualifying gasification project credit allocated from  
cooperatives  
Code Q. Unused investment credit from the qualifying advanced  
energy project credit allocated from cooperatives  
See Partner’s Instr. (Form 1065)  
Code R. Unused investment credit from the advanced  
manufacturing investment credit allocated from cooperatives  
See Partner’s Instr. (Form 1065)  
Code S. Reserved for future use  
Code T. Unused investment credit from the energy credit allocated  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
from cooperatives  
Code U. Unused investment credit from the rehabilitation credit  
allocated from cooperatives  
Code V. Advanced manufacturing production credit  
Codes W and X. Reserved for future use  
Code Y. Clean hydrogen production credit  
Code Z. Orphan drug credit  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AA. Enhanced oil recovery credit  
Code AB. Renewable electricity production credit  
Code AC. Biodiesel, renewable diesel, or sustainable aviation fuels See Partner’s Instr. (Form 1065)  
credit  
Code AD. New markets credit  
See Partner’s Instr. (Form 1065)  
24  
Instructions for Form 8865 (2023)  
Box Number / Item  
Code AE. Credit for small employer pension plan startup costs  
Code AF. Credit for small employer auto-enrollment  
Where to report or where to find further reporting information.  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AG. Credit for small employer military spouse retirement plan See Partner’s Instr. (Form 1065)  
eligibility  
Code AH. Credit for employer-provided childcare facilities and  
services  
See Partner’s Instr. (Form 1065)  
Code AI. Low sulfur diesel fuel production credit  
Code AJ. Qualified railroad track maintenance credit  
Code AK. Credit for oil and gas production from marginal wells  
Code AL. Distilled spirits credit  
Code AM. Energy efficient home credit  
Code AN. Alternative motor vehicle credit  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AO. Alternative fuel vehicle refueling property credit  
Code AP. Clean renewable energy bond credit  
Code AQ. New clean renewable energy bond credit  
Code AR. Qualified energy conservation bond credit  
Code AS. Qualified zone academy bond credit  
Code AT. Qualified school construction bond credit  
Code AU. Build America bond credit  
Code AV. Credit for employer differential wage payments  
Code AW. Carbon oxide sequestration credit  
Code AX. Carbon oxide sequestration credit recapture  
Code AY. New clean vehicle credit  
Code AZ. Qualified commercial clean vehicle credit  
Code BA. Credit for small employer health insurance premiums  
Code BB. Employer credit for paid family and medical leave  
Code BC. Eligible credits from transferor(s) under section 6418  
Codes BD through BG. Reserved for future use  
Code ZZ. Other  
See Partner’s Instr. (Form 1065)  
17. Alternative minimum tax (AMT) items  
Code A. Post-1986 depreciation adjustment  
Code B. Adjusted gain or loss  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
See Partner’s Instr. (Form 1065) and the Instructions for Form 6251  
Code C. Depletion (other than oil & gas)  
Code D. Oil, gas, and geothermal—gross income  
Code E. Oil, gas, and geothermal—deductions  
Code F. Other AMT items  
18. Tax-exempt income and nondeductible expenses  
Code A. Tax-exempt interest income  
Code B. Other tax-exempt income  
Code C. Nondeductible expenses  
19. Distributions  
Form 1040, line 2a  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code A. Cash and marketable securities  
Code B. Distribution subject to section 737  
Code C. Other property  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
20. Other information  
Code A. Investment income  
Form 4952, line 4a  
Form 4952, line 5  
Form 4136  
Code B. Investment expenses  
Code C. Fuel tax credit information  
Code D. Qualified rehabilitation expenditures (other than rental real See Partner’s Instr. (Form 1065)  
estate)  
Code E. Basis of energy property  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Form 4255  
Codes F through G. Recapture of low-income housing credit  
Code H. Recapture of investment credit  
Instructions for Form 8865 (2023)  
25  
Box Number / Item  
Code I. Recapture of other credits  
Where to report or where to find further reporting information.  
See Partner’s Instr. (Form 1065)  
See Form 8697  
Code J. Look-back interest—completed long-term contracts  
Code K. Look-back interest—income forecast method  
Code L. Dispositions of property with section 179 deductions  
Code M. Recapture of section 179 deduction  
See Form 8866  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code N. Business interest expense (information item)  
Code O. Section 453(I)(3) information  
Code P. Section 453A(c) information  
Code Q. Section 1260(b) information  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code R. Interest allocable to production expenditures  
Code S. Capital construction fund (CCF) nonqualified withdrawals  
Code T. Depletion information—oil and gas  
Code U. Section 743(b) basis adjustment  
Code V. Unrelated business taxable income  
Code X. Reserved for future use  
Code Y. Net investment income  
Code Z. Section 199A information  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AA. Section 704(c) information  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AB. Section 751 gain (loss)  
Code AC. Section 1(h)(5) gain (loss)  
Code AD. Deemed section 1250 unrecaptured gain  
Code AE. Excess taxable income  
Code AF. Excess business interest income  
Code AG. Gross receipts for section 448(c) (information item)  
Code AH. Noncash charitable contributions  
Code AI. Interest and tax on deferred compensation to partners  
Code AJ. Excess business loss limitation  
Code AK. Gain from mark-to-market election  
Code AL. Section 721(c) partnership  
Code AM. Section 1061 information  
Code AN. Farming and fishing business  
Code AO. PTP information  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AP. Inversion gain  
Code AQ. Conservation reserve program payments  
Code AR. IRA disclosure  
Code AS. Qualifying advanced coal project property and qualifying See Partner’s Instr. (Form 1065)  
gasification project property  
Code AT. Qualifying advanced energy project property  
Code AU. Advanced manufacturing investment property  
Code AV. Reserved for future use  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
Code AW. Reportable transactions  
Code AX. Reserved for future use  
Code AY. Foreign partners, Form 8990, Schedule A  
Codes AZ through BD. Reserved for future use  
Code ZZ. Other  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
See Partner’s Instr. (Form 1065)  
26  
Instructions for Form 8865 (2023)  
Using the list of activities and codes below,  
determine from which activity the business derives  
the largest percentage of its “total receipts.” Total  
receipts is defined as the sum of gross receipts or  
sales (Schedule B, line 1a); all other income  
purchases raw materials and supplies them to a  
subcontractor to produce the finished product, but  
retains title to the product, the business is  
Codes for Principal Business Activity  
and Principal Product or Service  
This list of Principal Business Activities and their  
associated codes is designed to classify an  
enterprise by the type of activity in which it is  
engaged to facilitate the administration of the  
Internal Revenue Code. These Principal Business  
Activity Codes are based on the North American  
Industry Classification System.  
considered a manufacturer and must use one of  
the manufacturing codes (311110–339900).  
reported on Schedule B, lines 4 through 7; income  
reported on Schedule K, lines 3a, 5, 6a, and 7;  
income or net gain reported on Schedule K, lines  
8, 9a, 10, and 11; and income or net gain reported  
on Form 8825, lines 2, 19, and 20a. If the business  
Once the Principal Business Activity is  
determined, enter the six-digit code from the list  
below on page 1, item H7. Also enter a brief  
description of the business activity in item H8.  
237210 Land Subdivision  
Paper Manufacturing  
333310 Commercial & Service  
Agriculture, Forestry, Fishing,  
and Hunting  
Industry Machinery Mfg  
237310 Highway, Street, & Bridge  
322100 Pulp, Paper, & Paperboard  
Construction  
Mills  
333410 Ventilation, Heating,  
Air-Conditioning, &  
237990 Other Heavy & Civil  
322200 Converted Paper Product Mfg  
Crop Production  
Commercial Refrigeration  
Equipment Mfg  
Engineering Construction  
Printing and Related Support  
111100 Oilseed & Grain Farming  
Specialty Trade Contractors  
Activities  
111210 Vegetable & Melon Farming  
333510 Metalworking Machinery Mfg  
238100 Foundation, Structure, &  
Building Exterior Contractors  
(including framing carpentry,  
masonry, glass, roofing, &  
siding)  
323100 Printing & Related Support  
Activities  
(including potatoes & yams)  
333610 Engine, Turbine & Power  
111300 Fruit & Tree Nut Farming  
Transmission Equipment Mfg  
Petroleum and Coal Products  
111400 Greenhouse, Nursery, &  
333900 Other General Purpose  
Machinery Mfg  
Manufacturing  
Floriculture Production  
324110 Petroleum Refineries  
(including integrated)  
111900 Other Crop Farming  
(including tobacco, cotton,  
sugarcane, hay, peanut,  
sugar beet, & all other crop  
farming)  
238210 Electrical Contractors  
Computer and Electronic Product  
Manufacturing  
238220 Plumbing, Heating, &  
324120 Asphalt Paving, Roofing, &  
Air-Conditioning Contractors  
334110 Computer & Peripheral  
Equipment Mfg  
Saturated Materials Mfg  
238290 Other Building Equipment  
Contractors  
324190 Other Petroleum & Coal  
Products Mfg  
334200 Communications Equipment  
Animal Production  
Mfg  
238300 Building Finishing  
Contractors (including  
drywall, insulation, painting,  
wallcovering, flooring, tile, &  
finish carpentry)  
Chemical Manufacturing  
112111 Beef Cattle Ranching &  
334310 Audio & Video Equipment  
Mfg  
Farming  
325100 Basic Chemical Mfg  
112112 Cattle Feedlots  
325200 Resin, Synthetic Rubber, &  
Artificial & Synthetic Fibers &  
Filaments Mfg  
334410 Semiconductor & Other  
112120 Dairy Cattle & Milk Production  
112210 Hog & Pig Farming  
Electronic Component Mfg  
238900 Other Specialty Trade  
Contractors (including site  
preparation)  
Manufacturing  
334500 Navigational, Measuring,  
Electromedical, & Control  
Instruments Mfg  
325300 Pesticide, Fertilizer, & Other  
112300 Poultry & Egg Production  
112400 Sheep & Goat Farming  
Agricultural Chemical Mfg  
325410 Pharmaceutical & Medicine  
Mfg  
334610 Manufacturing & Reproducing  
112510 Aquaculture (including  
shellfish & finfish farms &  
hatcheries)  
Magnetic & Optical Media  
Food Manufacturing  
325500 Paint, Coating, & Adhesive  
Electrical Equipment, Appliance,  
and Component Manufacturing  
Mfg  
311110 Animal Food Mfg  
311200 Grain & Oilseed Milling  
112900 Other Animal Production  
Forestry and Logging  
325600 Soap, Cleaning Compound, &  
Toilet Preparation Mfg  
335100 Electric Lighting Equipment  
311300 Sugar & Confectionery  
Mfg  
113110 Timber Tract Operations  
325900 Other Chemical Product &  
Product Mfg  
335200 Household Appliance Mfg  
335310 Electrical Equipment Mfg  
113210 Forest Nurseries & Gathering  
Preparation Mfg  
311400 Fruit & Vegetable Preserving  
& Specialty Food Mfg  
of Forest Products  
Plastics and Rubber Products  
Manufacturing  
335900 Other Electrical Equipment &  
113310 Logging  
311500 Dairy Product Mfg  
Component Mfg  
Fishing, Hunting, and Trapping  
114110 Fishing  
326100 Plastics Product Mfg  
326200 Rubber Product Mfg  
311610 Animal Slaughtering and  
Transportation Equipment  
Manufacturing  
Processing  
114210 Hunting & Trapping  
Nonmetallic Mineral Product  
311710 Seafood Product Preparation  
& Packaging  
336100 Motor Vehicle Mfg  
Manufacturing  
Support Activities for Agriculture  
336210 Motor Vehicle Body & Trailer  
and Forestry  
327100 Clay Product & Refractory  
Mfg  
311800 Bakeries, Tortilla & Dry Pasta  
Mfg  
Mfg  
115110 Support Activities for Crop  
Production (including cotton  
ginning, soil preparation,  
336300 Motor Vehicle Parts Mfg  
327210 Glass & Glass Product Mfg  
311900 Other Food Mfg (including  
coffee, tea, flavorings, &  
seasonings)  
336410 Aerospace Product & Parts  
327300 Cement & Concrete Product  
Mfg  
planting, & cultivating)  
Mfg  
336510 Railroad Rolling Stock Mfg  
336610 Ship & Boat Building  
115210 Support Activities for Animal  
Production (including  
Farriers)  
Beverage and Tobacco Product  
327400 Lime & Gypsum Product Mfg  
Manufacturing  
327900 Other Nonmetallic Mineral  
336990 Other Transportation  
312110 Soft Drink & Ice Mfg  
312120 Breweries  
Product Mfg  
115310 Support Activities for Forestry  
Equipment Mfg  
Primary Metal Manufacturing  
Furniture and Related Product  
Manufacturing  
Mining  
312130 Wineries  
331110 Iron & Steel Mills & Ferroalloy  
Mfg  
312140 Distilleries  
211120 Crude Petroleum Extraction  
211130 Natural Gas Extraction  
212110 Coal Mining  
337000 Furniture & Related Product  
331200 Steel Product Mfg From  
Purchased Steel  
312200 Tobacco Manufacturing  
Manufacturing  
Textile Mills and Textile Product  
Miscellaneous Manufacturing  
331310 Alumina & Aluminum  
Mills  
212200 Metal Ore Mining  
339110 Medical Equipment &  
Production & Processing  
313000 Textile Mills  
Supplies Mfg  
212310 Stone Mining & Quarrying  
331400 Nonferrous Metal (except  
Aluminum) Production &  
Processing  
314000 Textile Product Mills  
Apparel Manufacturing  
315100 Apparel Knitting Mills  
339900 Other Miscellaneous  
Manufacturing  
212320 Sand, Gravel, Clay, &  
Ceramic & Refractory  
Minerals Mining & Quarrying  
331500 Foundries  
Wholesale Trade  
212390 Other Nonmetallic Mineral  
315210 Cut & Sew Apparel  
Fabricated Metal Product  
Merchant Wholesalers, Durable  
Mining & Quarrying  
Contractors  
Manufacturing  
Goods  
213110 Support Activities for Mining  
315250 Cut & Sew Apparel Mfg  
(except Contractors)  
332110 Forging & Stamping  
423100 Motor Vehicle & Motor Vehicle  
Parts & Supplies  
332210 Cutlery & Handtool Mfg  
Utilities  
315990 Apparel Accessories & Other  
332300 Architectural & Structural  
423200 Furniture & Home Furnishings  
221100 Electric Power Generation,  
Apparel Mfg  
Metals Mfg  
Transmission, & Distribution  
423300 Lumber & Other Construction  
Leather and Allied Product  
Manufacturing  
332400 Boiler, Tank, & Shipping  
Container Mfg  
Materials  
221210 Natural Gas Distribution  
423400 Professional & Commercial  
Equipment & Supplies  
221300 Water, Sewage, & Other  
316110 Leather & Hide Tanning &  
332510 Hardware Mfg  
Systems  
Finishing  
332610 Spring & Wire Product Mfg  
423500 Metal & Mineral (except  
221500 Combination Gas & Electric  
Construction  
316210 Footwear Mfg (including  
rubber & plastics)  
Petroleum)  
332700 Machine Shops; Turned  
Product; & Screw, Nut, & Bolt  
Mfg  
423600 Household Appliances &  
Electrical & Electronic Goods  
316990 Other Leather & Allied  
Construction of Buildings  
Product Mfg  
332810 Coating, Engraving, Heat  
423700 Hardware, & Plumbing &  
Heating Equipment &  
Supplies  
236110 Residential Building  
Wood Product Manufacturing  
Treating, & Allied Activities  
Construction  
321110 Sawmills & Wood  
332900 Other Fabricated Metal  
Product Mfg  
236200 Nonresidential Building  
Construction  
Preservation  
423800 Machinery, Equipment, &  
321210 Veneer, Plywood, &  
Engineered Wood Product  
Mfg  
Supplies  
Machinery Manufacturing  
Heavy and Civil Engineering  
423910 Sporting & Recreational  
Goods & Supplies  
333100 Agriculture, Construction, &  
Construction  
Mining Machinery Mfg  
237100 Utility System Construction  
321900 Other Wood Product Mfg  
333200 Industrial Machinery Mfg  
27  
 
Codes for Principal Business Activity and Principal Product or Service (Continued)  
423920 Toy & Hobby Goods &  
Supplies  
Health and Personal Care Retailers  
Scenic & Sightseeing  
Transportation  
Activities Related to Credit  
Intermediation  
456110 Pharmacies & Drug Retailers  
423930 Recyclable Materials  
487000 Scenic & Sightseeing  
522300 Activities Related to Credit  
Intermediation (including loan  
brokers, check clearing, &  
money transmitting)  
456120 Cosmetics, Beauty Supplies,  
Transportation  
423940 Jewelry, Watch, Precious  
& Perfume Retailers  
Stone, & Precious Metals  
Support Activities for  
Transportation  
456130 Optical Goods Retailers  
423990 Other Miscellaneous Durable  
Goods  
446190 Other Health & Personal Care  
Securities, Commodity Contracts,  
and Other Financial Investments  
and Related Activities  
488100 Support Activities for Air  
Retailers  
Transportation  
Merchant Wholesalers, Nondurable  
Gasoline Stations & Fuel Dealers  
Goods  
488210 Support Activities for Rail  
Transportation  
457100 Gasoline Stations (including  
523150 Investment Banking &  
424100 Paper & Paper Products  
convenience stores with gas)  
Securities Intermediation  
488300 Support Activities for Water  
424210 Drugs & Druggists' Sundries  
457210 Fuel Dealers (including  
Heating Oil & Liquefied  
Petroleum)  
523160 Commodity Contracts  
Intermediation  
Transportation  
424300 Apparel, Piece Goods, &  
488410 Motor Vehicle Towing  
Notions  
523210 Securities & Commodity  
488490 Other Support Activities for  
424400 Grocery & Related Products  
424500 Farm Product Raw Materials  
424600 Chemical & Allied Products  
Clothing & Accessories Retailers  
Exchanges  
Road Transportation  
458110 Clothing & Clothing  
523900 Other Financial Investment  
Activities (including portfolio  
management & investment  
advice)  
488510 Freight Transportation  
Arrangement  
Accessories Retailers  
458210 Shoe Retailers  
424700 Petroleum & Petroleum  
488990 Other Support Activities for  
Products  
458310 Jewelry Retailers  
Transportation  
Insurance Carriers and Related  
424800 Beer, Wine, & Distilled  
Alcoholic Beverages  
458320 Luggage & Leather Goods  
Couriers and Messengers  
Activities  
Retailers  
492110 Couriers & Express Delivery  
524110 Direct Life, Health, & Medical  
Insurance Carriers  
424910 Farm Supplies  
Sporting, Hobby, Book, Musical  
Instrument, & Miscellaneous  
Retailers  
Services  
424920 Book, Periodical, &  
492210 Local Messengers & Local  
Delivery  
524120 Direct Insurance (except Life,  
Newspapers  
Health, & Medical) Carriers  
459110 Sporting Goods Retailers  
424930 Flower, Nursery Stock, &  
Florists' Supplies  
Warehousing and Storage  
524210 Insurance Agencies &  
Brokerages  
459120 Hobby, Toy, & Game Retailers  
493100 Warehousing & Storage  
424940 Tobacco Products &  
459130 Sewing, Needlework, & Piece  
(except lessors of  
524290 Other Insurance Related  
Electronic Cigarettes  
Goods Retailers  
mini-warehouses &  
Activities (including  
424950 Paint, Varnish, & Supplies  
459140 Musical Instrument &  
Supplies Retailers  
self-storage units)  
third-party administration of  
insurance and pension funds)  
424990 Other Miscellaneous  
Information  
Nondurable Goods  
459210 Book Retailers & News  
Funds, Trusts, and Other Financial  
Dealers (including  
Motion Picture and Sound  
Wholesale Trade Agents & Agents  
and Brokers  
Vehicles  
newsstands)  
Recording Industries  
525100 Insurance & Employee  
Benefit Funds  
459310 Florists  
512100 Motion Picture & Video  
Industries (except video  
rental)  
425120 Wholesale Trade Agents &  
Brokers  
459410 Office Supplies & Stationery  
525910 Open-End Investment Funds  
Retailers  
(Form 1120-RIC,)  
Retail Trade  
Motor Vehicle and Parts Dealers  
441110 New Car Dealers  
512200 Sound Recording Industries  
Publishing Industries  
459420 Gift, Novelty, & Souvenir  
Retailers  
525920 Trusts, Estates, & Agency  
Accounts  
459510 Used Merchandise Retailers  
459910 Pet & Pet Supplies Retailers  
459920 Art Dealers  
513110 Newspaper Publishers  
513120 Periodical Publishers  
513130 Book Publishers  
525990 Other Financial Vehicles  
(including mortgage REITs  
and closed-end investment  
funds)  
441120 Used Car Dealers  
441210 Recreational Vehicle Dealers  
441222 Boat Dealers  
459930 Manufactured (Mobile) Home  
513140 Directory & Mailing List  
“Offices of Bank Holding Companies”  
and “Offices of Other Holding  
Companies” are located under  
Management of Companies  
(Holding Companies) below.  
Dealers  
Publishers  
441227 Motorcycle, ATV, & All Other  
Motor Vehicle Dealers  
459990 All Other Miscellaneous  
Retailers (including tobacco,  
candle, & trophy retailers)  
513190 Other Publishers  
441300 Automotive Parts,  
Accessories, & Tire Retailers  
513210 Software Publishers  
Broadcasting & Content Providers  
Nonstore Retailers  
Building Material and Garden  
& Telecommunications  
Real Estate and Rental and  
Leasing  
Equipment and Supplies Dealers  
Nonstore retailers sell all  
types of merchandise using  
such methods as Internet,  
mail-order catalogs,  
516100 Radio & Television  
Broadcasting Stations  
444110 Home Centers  
444120 Paint & Wallpaper Stores  
444140 Hardware Retailers  
516210 Media Streaming, Social  
Networks, & Other Content  
Providers  
Real Estate  
interactive television, or direct  
sales. These types of  
531110 Lessors of Residential  
444180 Other Building Material  
Buildings & Dwellings  
Retailers should select the  
PBA associated with their  
primary line of products sold.  
For example, establishments  
primarily selling prescription  
and non-prescription drugs,  
select PBA code 456110  
Pharmacies & Drug Retailers.  
517000 Telecommunications  
(including Wired, Wireless,  
Satellite, Cable & Other  
Program Distribution,  
Dealers  
(including equity REITs)  
444200 Lawn & Garden Equipment &  
Supplies Retailers  
531120 Lessors of Nonresidential  
Buildings (except  
Mini-Warehouses) (including  
equity REITs)  
Food and Beverage Retailers  
Resellers, Agents, Other  
Telecommunications, &  
Internet Service Providers)  
445110 Supermarkets and Other  
531130 Lessors of Mini-Warehouses  
Grocery (except  
& Self-Storage Units  
Convenience) Retailers  
Data Processing, Web Search  
Portals, & Other Information  
Services  
(including equity REITs)  
445131 Convenience Retailers  
445132 Vending Machine Operators  
445230 Fruit & Vegetable Retailers  
445240 Meat Retailers  
Transportation and  
Warehousing  
531190 Lessors of Other Real Estate  
Property (including equity  
REITs)  
518210 Computing Infrastructure  
Providers, Data Processing,  
Web Hosting, & Related  
Services  
Air, Rail, and Water Transportation  
481000 Air Transportation  
482110 Rail Transportation  
483000 Water Transportation  
Truck Transportation  
531210 Offices of Real Estate Agents  
445250 Fish & Seafood Retailers  
445291 Baked Goods Retailers  
445292 Confectionery & Nut Retailers  
& Brokers  
531310 Real Estate Property  
Managers  
519200 Web Search Portals,  
Libraries, Archives, & Other  
Info. Services  
Finance and Insurance  
531320 Offices of Real Estate  
445298 All Other Specialty Food  
Appraisers  
Retailers  
484110 General Freight Trucking,  
Local  
531390 Other Activities Related to  
Real Estate  
445320 Beer, Wine, & Liquor  
Retailers  
Depository Credit Intermediation  
522110 Commercial Banking  
522130 Credit Unions  
484120 General Freight Trucking,  
Long-Distance  
Rental and Leasing Services  
Furniture and Home Furnishings  
Retailers  
484200 Specialized Freight Trucking  
532100 Automotive Equipment Rental  
& Leasing  
522180 Savings Institutions & Other  
449110 Furniture Retailers  
Transit and Ground Passenger  
Depository Credit  
Transportation  
532210 Consumer Electronics &  
Appliances Rental  
449121 Floor Covering Retailers  
449122 Window Treatment Retailers  
Intermediation  
485110 Urban Transit Systems  
Nondepository Credit  
532281 Formal Wear & Costume  
485210 Interurban & Rural Bus  
449129 All Other Home Furnishings  
Intermediation  
Rental  
Transportation  
Retailers  
522210 Credit Card Issuing  
522220 Sales Financing  
522291 Consumer Lending  
532282 Video Tape & Disc Rental  
485310 Taxi Service  
Electronics and Appliance Retailers  
532283 Home Health Equipment  
485320 Limousine Service  
449210 Electronics & Appliance  
Rental  
Retailers (including  
485410 School & Employee Bus  
532284 Recreational Goods Rental  
522292 Real Estate Credit (including  
computers)  
Transportation  
mortgage bankers &  
532289 All Other Consumer Goods  
General Merchandise Retailers  
485510 Charter Bus Industry  
originators)  
Rental  
455110 Department Stores  
485990 Other Transit & Ground  
522299 Intl, Secondary Market, &  
Other Nondepo. Credit  
Intermediation  
532310 General Rental Centers  
Passenger Transportation  
455210 Warehouse Clubs,  
Supercenters, & Other Merch  
Retailers  
532400 Commercial & Industrial  
Machinery & Equipment  
Rental & Leasing  
Pipeline Transportation  
486000 Pipeline Transportation  
28  
Codes for Principal Business Activity and Principal Product or Service (Continued)  
Lessors of Nonfinancial Intangible  
Assets (except copyrighted works)  
561210 Facilities Support Services  
561300 Employment Services  
Home Health Care Services  
Other Services  
621610 Home Health Care Services  
Repair and Maintenance  
533110 Lessors of Nonfinancial  
Intangible Assets (except  
copyrighted works)  
561410 Document Preparation  
Other Ambulatory Health Care  
811110 Automotive Mechanical &  
Services  
561420 Telephone Call Centers  
Services  
Electrical Repair &  
621900 Other Ambulatory Health  
Care Services (including  
ambulance services & blood  
& organ banks)  
Maintenance  
Professional, Scientific, and  
Technical Services  
561430 Business Service Centers  
(including private mail centers  
& copy shops)  
811120 Automotive Body, Paint,  
Interior, & Glass Repair  
811190 Other Automotive Repair &  
Maintenance (including oil  
change & lubrication shops &  
car washes)  
Hospitals  
Legal Services  
561440 Collection Agencies  
561450 Credit Bureaus  
622000 Hospitals  
541110 Offices of Lawyers  
541190 Other Legal Services  
Nursing and Residential Care  
561490 Other Business Support  
Facilities  
Services (including  
Accounting, Tax Preparation,  
811210 Electronic & Precision  
Equipment Repair &  
Maintenance  
repossession services, court  
reporting, & stenotype  
services)  
623000 Nursing & Residential Care  
Facilities  
Bookkeeping, and Payroll Services  
541211 Offices of Certified Public  
Social Assistance  
Accountants  
811310 Commercial & Industrial  
Machinery & Equipment  
(except Automotive &  
Electronic) Repair &  
561500 Travel Arrangement &  
624100 Individual & Family Services  
541213 Tax Preparation Services  
541214 Payroll Services  
Reservation Services  
624200 Community Food & Housing,  
& Emergency & Other Relief  
Services  
561600 Investigation & Security  
Services  
541219 Other Accounting Services  
Maintenance  
Architectural, Engineering, and  
811410 Home & Garden Equipment &  
561710 Exterminating & Pest Control  
624310 Vocational Rehabilitation  
Related Services  
Appliance Repair &  
Services  
Services  
Maintenance  
541310 Architectural Services  
561720 Janitorial Services  
624410 Childcare Services  
Arts, Entertainment, and  
Recreation  
811420 Reupholstery & Furniture  
541320 Landscape Architecture  
561730 Landscaping Services  
Repair  
Services  
561740 Carpet & Upholstery Cleaning  
811430 Footwear & Leather Goods  
Repair  
541330 Engineering Services  
541340 Drafting Services  
Services  
561790 Other Services to Buildings &  
Dwellings  
Performing Arts, Spectator Sports,  
811490 Other Personal & Household  
541350 Building Inspection Services  
and Related Industries  
Goods Repair & Maintenance  
541360 Geophysical Surveying &  
561900 Other Support Services  
(including packaging &  
labeling services, &  
711100 Performing Arts Companies  
Personal and Laundry Services  
812111 Barber Shops  
Mapping Services  
711210 Spectator Sports (including  
541370 Surveying & Mapping (except  
Geophysical) Services  
sports clubs & racetracks)  
convention & trade show  
organizers)  
812112 Beauty Salons  
812113 Nail Salons  
711300 Promoters of Performing Arts,  
Sports, & Similar Events  
541380 Testing Laboratories &  
Waste Management and  
Services  
812190 Other Personal Care Services  
711410 Agents & Managers for  
Artists, Athletes, Entertainers,  
& Other Public Figures  
Remediation Services  
(including diet & weight  
Specialized Design Services  
562000 Waste Management &  
Remediation Services  
reducing centers)  
541400 Specialized Design Services  
(including interior, industrial,  
graphic, & fashion design)  
812210 Funeral Homes & Funeral  
711510 Independent Artists, Writers,  
Services  
Educational Services  
611000 Educational Services  
(including schools, colleges,  
& universities)  
Health Care and Social  
Assistance  
& Performers  
812220 Cemeteries & Crematories  
Computer Systems Design and  
Museums, Historical Sites, and  
Similar Institutions  
Related Services  
812310 Coin-Operated Laundries &  
Drycleaners  
541511 Custom Computer  
Programming Services  
712100 Museums, Historical Sites, &  
812320 Drycleaning & Laundry  
Services (except  
Similar Institutions  
541512 Computer Systems Design  
Amusement, Gambling, and  
Recreation Industries  
Coin-Operated)  
Services  
812330 Linen & Uniform Supply  
541513 Computer Facilities  
Management Services  
713100 Amusement Parks & Arcades  
713200 Gambling Industries  
Offices of Physicians and Dentists  
812910 Pet Care (except Veterinary)  
621111 Offices of Physicians (except  
Services  
541519 Other Computer Related  
mental health specialists)  
713900 Other Amusement &  
Services  
812920 Photofinishing  
Recreation Industries  
621112 Offices of Physicians, Mental  
Health Specialists  
Other Professional, Scientific, and  
Technical Services  
812930 Parking Lots & Garages  
812990 All Other Personal Services  
(including golf courses, skiing  
facilities, marinas, fitness  
centers, & bowling centers)  
621210 Offices of Dentists  
541600 Management, Scientific, &  
Technical Consulting  
Services  
Religious, Grantmaking, Civic,  
Professional, and Similar  
Organizations  
Offices of Other Health  
Practitioners  
Accommodation and Food  
Services  
621310 Offices of Chiropractors  
621320 Offices of Optometrists  
541700 Scientific Research &  
813000 Religious, Grantmaking,  
Civic, Professional, & Similar  
Organizations (including  
condominium and  
Development Services  
Accommodation  
541800 Advertising & Public  
Relations, & Related Services  
621330 Offices of Mental Health  
Practitioners (except  
Physicians)  
721110 Hotels (except Casino Hotels)  
& Motels  
homeowners associations)  
541910 Marketing Research & Public  
721120 Casino Hotels  
Opinion Polling  
621340 Offices of Physical,  
Occupational & Speech  
Therapists, & Audiologists  
Other  
721191 Bed & Breakfast Inns  
541920 Photographic Services  
999999 Unclassified Establishments  
721199 All Other Traveler  
541930 Translation & Interpretation  
(unable to classify)  
Accommodation  
621391 Offices of Podiatrists  
Services  
721210 RV (Recreational Vehicle)  
Parks & Recreational Camps  
621399 Offices of All Other  
Miscellaneous Health  
Practitioners  
541940 Veterinary Services  
541990 All Other Professional,  
Scientific, & Technical  
Services  
721310 Rooming & Boarding Houses,  
Dormitories, & Workers’  
Camps  
Outpatient Care Centers  
621410 Family Planning Centers  
Management of Companies  
(Holding Companies)  
Food Services and Drinking Places  
621420 Outpatient Mental Health &  
722300 Special Food Services  
Substance Abuse Centers  
(including food service  
621491 HMO Medical Centers  
621492 Kidney Dialysis Centers  
551111 Offices of Bank Holding  
contractors & caterers)  
Companies  
722410 Drinking Places (Alcoholic  
551112 Offices of Other Holding  
Companies  
621493 Freestanding Ambulatory  
Surgical & Emergency  
Centers  
Beverages)  
722511 Full Service Restaurants  
Administrative and Support and  
Waste Management and  
Remediation Services  
722513 Limited Service Restaurants  
621498 All Other Outpatient Care  
722514 Cafeterias, Grill Buffets,  
Centers  
Buffets  
Medical and Diagnostic  
Laboratories  
722515 Snack & Nonalcoholic  
Beverage Bars  
Administrative and Support  
621510 Medical & Diagnostic  
Services  
Laboratories  
561110 Office Administrative  
Services  
29  
Index  
Foreign Partnership 6  
Future Developments 1  
Schedule G (Form 8865). Statement of  
Application of the Gain Deferral Method  
Under Section 721(c) 12  
10% interest 6  
50% interest 6  
Schedule H (Form 8865). Acceleration  
Events and Exceptions Reporting  
Relating to Gain Deferral Method Under  
Section 721(c) 14  
G
A
General Instructions 1  
Acquisitions 4  
Analysis of partners' capital accounts 18  
Attached statements 17  
General Reporting Instructions for  
Schedule N. Transactions Between  
Controlled Foreign Partnership and  
Partners or Other Related Entities 18  
Schedule K-1 17  
H
Schedule O (Form 8865). Transfer of  
B
Property to a Foreign Partnership 19  
Hyperinflationary Exception 9  
Balance sheets per books 18  
Schedule P (Form 8865). Acquisitions,  
Dispositions, and Changes of Interests  
in a Foreign Partnership 20  
I
C
Identifying Numbers and Addresses 8  
Schedules K-2 (Form 8865), Partners’  
Distributive Share Items—International,  
and K-3 (Form 8865), Partner’s Share of  
Income, Deductions, Credits,  
Categories of Filers 3  
Category 1 filer 3, 9, 11  
L
Category 2 filer 3, 9  
List of Codes Used in Schedule K-1 (Form  
etc.—International 18  
Category 3 filer 3, 9, 11  
8865) 22  
Schedules K, Partners' Distributive Share  
Items and K-1 (Form 8865), Partner’s  
Share of Income, Deductions, Credits,  
Etc. 16  
Category 4 filer 4, 9  
Change in a Proportional Interest 6  
Changes in Proportional Interests 4  
Consolidated Return 8  
P
Partnership 6  
Specific Instructions 7  
Penalties 7  
Constructive Ownership 6  
Control of a Corporation 6  
Corrections to Form 8865 7  
Purpose of Form 2  
T
Tax Year 8  
Treaty-based Return Positions 7  
R
D
Relief for Category 1 and 2 filers 5  
Definitions 6  
Dispositions 4  
U
S
U.S. Person 6  
Schedule A-1. Certain partners of Foreign  
E
Partnership 11  
W
Schedule A-2. Foreign Partners of Section  
Exceptions for Filing:  
721(c) Partnership 11  
What’s New 1  
When To File 5  
Who Must File 2  
Category 4 filers 5  
Schedule A-3. Affiliation Schedule 12  
Schedule A. Constructive Ownership of  
Exceptions to Filing 4  
Constructive owners 4  
Multiple Category 1 filers 4  
Partnership Interest 11  
Schedule B. Income Statement–Trade or  
Business Income 12  
F
Schedule D. Capital Gains and Losses 12  
Foreign Address 8  
30