# Brookfield Partnership K-1 form?



## MrsPartridge (May 15, 2016)

I got some K-1 forms for hubby for his Brookfield Partnership holdings in his RRSP. I thought BIP.UN was supposed to be Canadian. Groan. I'm trying to avoid all US holdings as husband is dual and we haven't sent in any US tax return in a number of years. The IRS is hoping to know and collect from their citizens abroad. No other foreign country demands money from their expats. The IRS wants money from TFSAs, RESPs and all other investments. 

Are there any other duals here?


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## BC Eddie (Feb 2, 2014)

I am not a tax expert but if you are referring to the T1135 form and the holding is in an RRSP it does not need to be included on the form


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## My Own Advisor (Sep 24, 2012)

K-1 forms are sent regardless of who owns the stock and in what account and where they live. They (Brookfield) are required to issue them.

If you keep BIP.UN or BIP in your RRSP, you should be fine (i.e., no need to complete forms and send them to IRS because the RRSP is a tax-deferred retirement account and is not subject to T1135).

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/frgn/1135-eng.html

If your husband has dual citizenship, there might be an issue but I cannot tackle that one!

Investments held inside many Canadian registered accounts (RRSP’s, RRIF’s) are exempt from this reporting requirement, as are foreign securities held by Canadian mutual funds and ETF’s. This means the average investor only has to worry about non-registered accounts and foreign bank accounts for T1135.

https://bip.brookfield.com/en/stock-and-distribution/tax-information


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## redsgomarching (Mar 6, 2016)

I generally thought US securities in RRSP are fine regardless as the IRS/USA recognize that the RRSP is a registered government plan vs not treating the same for the TFSA (which is why there is no 15% WH on foreign divs in RRSP).


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## My Own Advisor (Sep 24, 2012)

Agreed Reds. The problem for the OP, and Brookfield for that matter, they don't know where the investor holds their asset. So they send the K-1 regardless because they are legally obligated to.


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## james4beach (Nov 15, 2012)

An old thread but in case anyone sees this. Warning!

Various Brookfield shares, and other commodity pool shares like DBC and USO (both of which are very popular) are going to have 10% withheld from the proceeds of sales starting January 1.

It's baffling that this will apply to some Brookfields too, but that appears to be the case. For example BEP, BEP.UN, BIP and others appear on this Interactive Brokers list of Publicly Traded Partnership (PTP) securities that will result in the *IRS taking a 10% tax when you sell shares.*






Withholding on Publicly Traded Partnerships under IRC Sec. 1446(f) | IB Knowledge Base







ibkr.info





Any security which generates a K-1 form is in danger of having this new 10% tax upon sale, but it seems that the companies can also publish a Qualified Notice which prevents it.


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