{"id":155,"date":"2022-10-25T18:46:27","date_gmt":"2022-10-25T18:46:27","guid":{"rendered":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/?p=155"},"modified":"2023-01-10T12:32:57","modified_gmt":"2023-01-10T16:32:57","slug":"foreign-partnership","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/filing\/business\/foreign-partnership\/","title":{"rendered":"Foreign Partnership"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">What is a foreign partnership?<\/h2>\n\n\n\n<p>Any business entity formed outside the U.S. is a foreign entity. That foreign entity becomes a foreign partnership if it has two or more owners and at least one of the owners has unlimited liability with respect to the entity\u2019s affairs.<\/p>\n\n\n\n<p>Watch out \u2014 even if an entity is considered a partnership under the laws of a foreign country, it may be considered something else in the U.S. for tax purposes, such as a corporation.<\/p>\n\n\n\n<div class=\"wp-block-create-block-hrb-expat-ways-to-file\" class=\"wp-block-create-block-hrb-expat-ways-to-file\"><div class=\"wtf-column wtf-column--left\"><a href=\"https:\/\/expatonline.hrblock.com\/wizard\/introduction\/2021?sat_track=true\" target=\"_blank\" rel=\"noopener\" data-track=\"{'loc':'b', 'nm':'start file yourself'}\">File on my own<\/a><\/div><div class=\"wtf-column wtf-column--right\"><a href=\"https:\/\/expat.hrblock.com\/s\/login\/SelfRegister?sat_track=true\" target=\"_blank\" rel=\"noopener\" data-track=\"{'loc':'b', 'nm':'start file with an advisor'}\">File with an advisor<\/a><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-report-income-from-a-foreign-partnership\">How to report income from a foreign partnership<\/h2>\n\n\n\n<p>If a foreign partnership has income from the U.S., they may be required to file Form 1065 to report that U.S. income.<\/p>\n\n\n\n<p>If a foreign partnership is considered a controlled foreign partnership, certain US partners may have to file\u00a0<a href=\"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/forms\/tax-form-8865\/\">Form 8865<\/a>\u00a0to report their interest in that partnership. Form 8865 has\u00a0<a href=\"https:\/\/www.irs.gov\/instructions\/i8865\" target=\"_blank\" rel=\"noreferrer noopener\">four different filing categories<\/a>, and each category has different documentation to attach. It is also possible to be in multiple categories simultaneously, so we recommend filing with an Expat Tax Advisor to help you find your category.<\/p>\n\n\n\n<p>After you know what category your foreign partnership falls under, you can identify&nbsp;<a href=\"https:\/\/www.irs.gov\/instructions\/i8865\" target=\"_blank\" rel=\"noreferrer noopener\">which schedules to file<\/a>. It\u2019s worth noting that in certain circumstances, you may be closely related enough to the owner to be treated as an owner, and thus considered a constructive owner of a foreign partnership. For example, if your spouse owns 100% of stock of a company, you\u2019d constructively also have that ownership and be treated like an owner.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-owner-of-a-foreign-partnership-trust-your-taxes-to-h-r-block-expat-tax-services\">Owner of a foreign partnership? Trust your taxes to H&amp;R Block Expat Tax Services<\/h2>\n\n\n\n<p>Taxes aren\u2019t easy, and they get downright complicated once you throw in a foreign business entity. Having ownership in a foreign partnership has a lot of implications for your U.S. taxes, which is why we\u2019re here to help.<\/p>\n\n\n\n<p>Here\u2019s\u00a0<a href=\"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/filing\/how-to-pay-file-taxes-as-an-expat\/\">how to file your U.S. expat taxes online:<\/a><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Head on over to our&nbsp;<a href=\"https:\/\/www.hrblock.com\/expat-tax-preparation\/expat-tax-preparation-and-services\/\">Ways to File<\/a>&nbsp;page<\/strong><\/li>\n\n\n\n<li><strong>Pick your journey\u2014in the driver\u2019s seat with our online DIY tool or letting an Expat Tax Advisor take the wheel.<\/strong><\/li>\n\n\n\n<li><strong>Once you\u2019re through your chosen journey, you review your return and pay<\/strong><\/li>\n\n\n\n<li><strong>We file your return with the IRS<\/strong><\/li>\n\n\n\n<li><strong>You sit back knowing your taxes were done right<\/strong><\/li>\n<\/ol>\n\n\n\n<p>No matter where in the world you are, we\u2019ve got a tax solution for you. Get started with our made-for-expats&nbsp;<a href=\"https:\/\/www.hrblock.com\/expat-tax-preparation\/expat-tax-preparation-and-services\/\">online Expat Tax Services<\/a>&nbsp;today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Find out the definition of a foreign partnership and see how it may affect the way you file taxes as a U.S. Expat with the experts at H&#038;R Block.<\/p>\n","protected":false},"author":3,"featured_media":156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"acf":[],"yoast_head":"<title>Foreign Partnership | H&amp;R Block\u00ae<\/title>\n<meta name=\"description\" content=\"Find out the definition of a foreign partnership and see how it may affect the way you file taxes as a U.S. Expat with the experts at 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