Company: BPYPN
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001545772-25-000008
Chunk: 186

Company: Brookfield Property Partners L.P.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 186
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 of BPY

A non-U. S. entity will be treated as a CFC if it is treated as a corporation for U. S. federal income tax purposes and more than 50% of (i) the total combined voting power of all classes of stock of the non-U. S. entity entitled to vote or (ii) the total value of the stock of the non-U. S. entity is owned by U. S. Shareholders on any day during the taxable year of such non-U. S. entity. For this purpose, a “ U. S. Shareholder” with respect to a non-U. S. entity means a U. S. person (including a U. S. partnership) that owns (directly, indirectly or constructively) 10% or more of the total combined voting power of all classes of stock of the non-U. S. entity entitled to vote or 10% or more of the total value of shares of all classes of stock of the non-U. S. entity.

If a U. S. partnership in which BPY owns an interest is a U. S. Shareholder of a CFC, then any gain allocated to a U. S. Holder of Preferred Units from the disposition of an equity interest in the CFC may be treated as dividend income to the extent of the holder’s allocable share of the current and/or accumulated earnings and profits of the CFC, as calculated under the CFC rules. Based on BPY’s organizational structure, the BPY General Partner currently believes that one or more of its existing subsidiaries is likely to be classified as a CFC. Moreover, BPY may in the future acquire certain investments or operating entities through one or more subsidiaries treated as corporations for U. S. federal income tax purposes, and such future subsidiaries or other companies in which BPY acquires an interest may be treated as CFCs.

Notwithstanding the CFC rules described above, based on BPY’s treatment of distributions on Preferred Units as guaranteed payments for the use of capital, BPY intends to take the position that the CFC rules generally do not apply to U. S. Holders of Preferred Units whose indirect interest in a CFC arises solely by reason of owning the Preferred Units. If this position is correct, gain on the disposition of stock of such a CFC by such U. S. Holders (including indirectly, by reason of the disposition of Preferred Units by such holders) generally would not be taxable to such holders under the