Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 72

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 3
Chunk 72
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 or our unitholders, and any such income or gain may be subject to a corporate income tax, in the United States or other jurisdictions, at the level of the Holding Entity. Any such additional taxes may adversely affect our company’s ability to maximize its cash flow.

Our unitholders taxable in the United States may be viewed as holding an indirect interest in an entity classified as a “passive foreign investment company” for U. S. federal income tax purposes.

U. S. Holders may face adverse U. S. tax consequences arising from the ownership of a direct or indirect interest in an entity classified as a “passive foreign investment company”, or PFIC, for U. S. federal income tax purposes. See Item 10. E, “ Taxation - Certain Material U. S. Federal Income Tax Considerations-Consequences to U. S. Holders - Passive Foreign Investment Companies”. Based on our organizational structure, as well as our expected income and assets, the BBU General Partner currently believes that a U. S. Holder is unlikely to be regarded as owning an interest in a PFIC solely by reason of owning our units for the taxable year ending December 31, 2025. However, there can be no assurance that a future entity in which our company 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. Each U. S. Holder should consult its own tax adviser regarding the implications of the PFIC rules for an investment in our units.

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

If a U. S. Holder sells units that it holds, then it generally will recognize gain or loss for U. S. federal income tax purposes equal to the difference between the amount realized and its adjusted tax basis in such units. Prior distributions to a U. S. Holder in excess of the total net taxable income allocated to such U. S. Holder will have decreased such U. S. Holder’s tax basis in our units. Therefore, such excess distributions will increase a U. S. Holder’s taxable gain or decrease such U. S. Holder’s taxable loss when our 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