Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 226

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 226
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 a future entity in which BEP acquires an interest will not be classified as a PFIC with respect to a U. S. Holder, because PFIC status is a factual determination that depends on the assets and income of a given entity and must be made on an annual basis. In general, gain realized by a U. S. Holder from the sale of stock of a PFIC is subject to tax at ordinary income rates, and an interest charge generally applies. Alternatively, a U. S. Holder that makes certain elections with respect to a direct or indirect interest in a PFIC may be required to recognize taxable income prior to the receipt of cash relating to such income. The adverse consequences of owning an interest in a PFIC, as well as certain tax elections for mitigating these adverse consequences, are

described in greater detail in Item 10. E “ Taxation - Certain Material U. S. Federal Income Tax Considerations - Consequences to U. S. Holders - Passive Foreign Investment Companies”. Each U. S. Holder should consult its own tax adviser regarding the implications of the PFIC rules for an investment in LP units.

Tax gain or loss from the disposition of LP units could be more or less than expected.

Upon the sale of LP units, a U. S. Holder generally will recognize gain or loss for U. S. federal income tax purposes equal to the difference between the amount realized and such holder’s adjusted tax basis in those LP units. Prior distributions to a U. S. Holder in excess of the total net taxable income allocated to such holder will have decreased such holder’s tax basis in its LP units. Therefore, such excess distributions will increase a U. S. Holder’s taxable gain or decrease such holder’s taxable loss when our LP units are sold, and may result in a taxable gain even if the sale price is less than the original cost. A portion of the amount realized, whether or not representing gain, could be ordinary income to such U. S. Holder.

The Brookfield Renewable structure involves complex provisions of U. S. federal income tax law for which no clear precedent or authority may be available. The tax characterization of the Brookfield Renewable structure is also subject to potential legislative, judicial, or administrative change and differing interpretations, possibly on a retroactive basis.

The U. S. federal income tax treatment of LP unitholders depends in some instances on determinations of fact and interpretations of complex provisions of U. S. federal income tax law for which no clear precedent or authority may be