Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 393

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 10
Chunk 393
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 your tax liabilities might be adjusted to your detriment. The BBU General Partner is authorized to revise our company’s method of allocation between transferors and transferees (as well as among investors whose interests otherwise vary during a taxable period).

  214      Brookfield Business Partners  

U. S. Federal Estate Tax Consequences

If our units are included in the gross estate of a U. S. citizen or resident for U. S. federal estate tax purposes, then a U. S. federal estate tax might be payable in connection with the death of such person. Individual U. S. Holders should consult their own tax advisers concerning the potential U. S. federal estate tax consequences with respect to our units.

Certain Reporting Requirements

A U. S. Holder who invests more than $100,000 in our company may be required to file IRS Form 8865 reporting the investment with such U. S. Holder’s U. S. federal income tax return for the year that includes the date of the investment. You may be subject to substantial penalties if you fail to comply with this and other information reporting requirements with respect to an investment in our units. You should consult your own tax adviser regarding such reporting requirements.

U. S. Taxation of Tax-Exempt U. S. Holders of Our Units

Income recognized by a U. S. tax-exempt organization generally is exempt from U. S. federal income tax, except to the extent of the organization’s UBTI. UBTI is defined generally as any gross income derived by a tax-exempt organization from an unrelated trade or business that it regularly carries on, less the deductions directly connected with that trade or business. In addition, income arising from a partnership (or other entity treated as a partnership for U. S. federal income tax purposes) that holds operating assets or is otherwise engaged in a trade or business generally will constitute UBTI. Notwithstanding the foregoing, UBTI generally does not include any dividend income, interest income, certain other categories of passive income or capital gains realized by a tax-exempt organization, so long as such income is not “debt-financed”, as discussed below. The BBU General Partner currently believes that our company should not be regarded as engaged in a trade or business, and anticipates that any operating assets held by our company will be held through entities that are treated as corporations for U. S. federal income tax purposes.

The exclusion from UBTI does not apply to income from “debt-fin