Helping Individuals – US Partners in non-US Partnerships

US Partners in non-US Partnerships

American partners in partnerships located outside the US must file US information returns regarding their partnership if Americans are collectively 10% or more partners in a non-US corporation.

If Americans own between 10% and 50% of a foreign partnership, you usually have to file Form 8865 in the year the partnership begins, the year it closes, and most years when partnership percentages change. 

If Americans own more than 50%, you usually file Form 8865 every year. 

Form 8865 converts financials statements from foreign currency and fiscal year to US dollar and calendar year, using US GAAP and IRS rules for allowable deductions. This means that the bottom line on your partnership may be very different for US tax purposes. For that reason, it’s best to take advice prior to starting your corporation.

We assist with all compliance related to foreign entities owned by Americans.

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