Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 458

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 10
Chunk 458
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 BEP prior to such U. S. Holder’s ownership of such LP units.

Section 706 of the U. S. Internal Revenue Code generally governs allocations of items of partnership income and deductions between transferors and transferees of partnership interests, and the Treasury Regulations provide a safe harbor allowing a publicly traded partnership to use a monthly simplifying convention for such purposes. However, it is not clear that BEP’s allocation method complies with the requirements. If BEP’s convention were not permitted, the IRS might contend that BEP’s taxable income or losses must be reallocated among LP unitholders. If such a contention were sustained, a U. S. Holder’s tax liabilities might be adjusted to such holder’s detriment. The

Managing General Partner is authorized to revise BEP’s method of allocation between transferors and transferees (as well as among investors whose interests otherwise vary during a taxable period).

U. S. Federal Estate Tax Consequences

If LP 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 its own tax advisers concerning the potential U. S. federal estate tax consequences with respect to LP units.

Certain Reporting Requirements

A U. S. Holder who invests more than $100,000 in BEP 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. A U. S. Holder may be subject to substantial penalties if it fails to comply with this and other information reporting requirements with respect to an investment in LP units. Each U. S. Holder should consult its own tax adviser regarding such reporting requirements.

U. S. Taxation of Tax-Exempt U. S. Holders of LP 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