Instructions For Forms 8804, 8805, And 8813 - 2011 (Page 5 of 12) in pdf

1.1446-5(e) for upper-tier domestic

See Regulations section 1.1446-3(a)(2)

partnership disposed of the U.S. real

partnerships. See Regulations section

for additional information.

property interest. The amount withheld

1.1446-5(b) for reporting requirements.

will be shown in box 2 of the Form

If the partnership has net ordinary loss,

8288-A.

Note. The look-through rules referred to

net short-term capital loss, or net 28%

above apply only for purposes of the

rate loss, each net loss should be netted

Line 6e

lower-tier partnership’s computation of its

against the appropriate categories of

Enter on line 6e the amount of section

section 1446 tax liability. It does not affect

income and gain to determine the

1445(e) tax withheld on a distribution by a

amounts of income and gain to be

the upper-tier partnership’s reporting

domestic trust to the partnership with

entered on lines 4e, 4i, and 4m,

requirements with respect to Forms 8804

respect to the disposition of a U.S. real

and 8805 as set forth in the next

respectively. See section 1(h) and Notice

property interest by the trust. The amount

paragraph and elsewhere in these

97-59, 1997-45 I.R.B. 7, for rules for

withheld will be shown in box 7 of the

instructions.

netting gains and losses.

Form 1042-S the partnership receives

Note. Partnership ECTI on which a

An upper-tier partnership that has had

from the trust. (Box 1 of the Form 1042-S

foreign partner is exempt from U.S. tax by

section 1446 tax payments made on its

will show income code 25 or 26.)

a treaty or other reciprocal agreement is

behalf by a lower-tier partnership will

Reporting Amounts Allocable

not allocable to that partner and is exempt

receive a copy of Form 1042-S or Form

To Partners

from withholding under section 1446.

8805 from the lower-tier partnership. The

However, this exemption from section

upper-tier partnership must in turn file

For lines 6d and 6e, do not enter more

1446 withholding must be reported on

these forms with its Form 8804 and treat

than the amount allocable to foreign

Form 8805. See instructions for line 8b of

the amount withheld by the lower-tier

partners (as defined in section 1446(e)).

Form 8805, later.

partnership as a credit against its own

Enter amounts allocable to U.S. partners

liability to withhold under section 1446.

on line 15f of Schedule K (Form 1065)

Lines 4b, 4f, 4j, and 4n

This credit is allowed on line 6b or line 6c

and in box 15 (using code P) of Schedule

Enter the reduction amounts for state and

of the Form 8804 filed by the upper-tier

K-1 (Form 1065). For Form 1065-B, enter

local taxes under Regulations section

partnership. The upper-tier partnership

amounts on line 15 of Schedule K and in

1.1446-6(c)(1)(iii). See Reductions for

must also provide to its partners the

box 9 of Schedule K-1.

State and Local Taxes on page 3 for

information described in Reporting to

Line 8

additional information. The netting rules

Partners on page 3. These statements

under section 1(h) and Notice 97-59 must

If Schedule A (Form 8804) is attached,

and forms will enable those partners to

be considered in determining the category

check the box on line 8 and enter the

obtain appropriate credit for tax withheld

of income the reduction amounts offset.

amount of any penalty on this line.

under section 1446.

Lines 4c, 4g, 4k, and 4o

See Regulations section 1.1446-5 for

Form 8805

additional information.

Enter the reduction amounts resulting

from certified partner-level items received

Line 1b

from foreign partners using Form 8804-C.

A partnership must pay the withholding

Specific Instructions

See Certification of Deductions and

tax for a foreign partner even if it does not

Losses on page 3 for additional

have a U.S. TIN for that partner. See

information. The netting rules under

Address

Taxpayer Identifying Number on page 1

section 1(h) and Notice 97-59 must be

for details.

considered in determining the category of

When providing a U.S. address on Form

income the reduction amounts offset.

Line 1c

8804, 8805, or 8813, include the suite,

room, or other unit number after the street

Line 5e

See Address, earlier.

address. If the post office does not deliver

Line 3

Add lines 5a through 5d.

mail to the street address and the

partnership (or withholding agent) has a

Line 6b

Enter the type of partner (for example,

P.O. box, show the box number instead of

individual, corporation, partnership, trust,

If the partnership is an upper-tier

the street address. If the partnership (or

estate).

partnership in one or more lower-tier

withholding agent) receives its mail in

Line 4

partnerships, enter on line 6b the amount

care of a third party (such as an

of section 1446 tax withheld by lower-tier

accountant or an attorney), enter on the

Enter the applicable two-letter code from

partnerships with respect to ECTI

street address line “c/o” followed by the

the list at

for

allocable to the upper-tier partnership

third party’s name and street address or

the country of which the partner is a

(see Tiered Partnerships on page 4). The

P.O. box.

resident for tax purposes. These codes

amount withheld will be shown on line 10

are used by the IRS to provide

When providing a foreign address on

of the Form 8805 the partnership receives

information to all tax treaty countries for

Form 8804, 8805, or 8813, enter the

from the lower-tier partnership.

purposes of their tax administration.

number and street, city, province or state,

Line 6c

and the name of the country. Follow the

Line 5c

foreign country’s practice in placing the

Enter on line 6c the amount of section

See Address, earlier.

postal code in the address. Do not

1446 tax withheld by a lower-tier PTP that

Line 8b

abbreviate the country name.

is reported to the partnership on Form

1042-S. The amount withheld will be

Check the box on this line if any of the

Form 8804

shown in box 7 of the Form 1042-S. (Box

partnership’s ECTI is treated as not

1 of the Form 1042-S will show income

allocable to the foreign partner identified

Lines 1c, 1d, 2c, and 2d

code 27.)

on line 1a and therefore exempt from

See Address above.

section 1446 withholding because the

Line 6d

income is exempt from U.S. tax for that

Lines 4a, 4e, 4i, and 4m

Line 6d applies only to partnerships

foreign partner by a treaty, reciprocal

treated as foreign persons and subject to

Figure the partnership’s ECTI using the

exemption, or a provision of the Internal

withholding under section 1445(a) or

definition on page 2. Enter the total ECTI

Revenue Code.

1445(e)(1) upon the disposition of a U.S.

allocable to foreign partners (by income

Line 9

real property interest.

type) on lines 4a, 4e, 4i, and 4m. With

respect to lines 4e, 4i, and 4m, enter the

Enter on line 6d the amount of tax

Enter the partnership ECTI allocable to

specified types of income allocable to

withheld under section 1445(a) or

the foreign partner (before considering

non-corporate partners if appropriate

1445(e)(1) and shown on Form 8288-A,

any state and local income tax reduction

documentation is received and such

Statement of Withholding on Dispositions

permitted under Regulations section

partners would be entitled to use a

by Foreign Persons of U.S. Real Property

1.1446-6(c)(1)(iii) or any reduction

preferential rate on such income or gain.

Interests, for the tax year in which the

amounts resulting from certified

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Instructions for Forms 8804, 8805, and 8813 (2011)

Instructions For Forms 8804, 8805, And 8813 - 2011 Page 5

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