For schedule K-1 support or if you are a registered holder with questions on form T5013, please call our tax package support team at (855) 521-8156 or click here

IRC Section 1446(F)

Qualified Notices 

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Am I subject to U.S. tax withholding under IRC Section 1446(f) on the disposition of Brookfield Property Partners units?

We do not expect non-U.S. investors to be subject to U.S. tax withholding under IRC Section 1446(f) on the disposition of their units. Brookfield Property Partners has not been and does not expect to be engaged in a U.S. trade or business within the meaning of Treas. Reg. Sec. 1.1446(f)-4(b)(3)(ii)(A)(2). Brookfield Property Partners has issued and intends to issue qualified notices in accordance with Treas. Reg. Sec. 1.1446(f)-4(b)(3)(iii) as applicable. Previously issued notices can be found in the “Qualified Notices” section under Other Tax Materials. Please also see a letter from counsel on this issue below:

I am a Canadian resident. Is the distribution I am paid from Brookfield Property Partners subject to Withholding Tax?

Brookfield Property Partners is a “flow through” entity for Canadian income tax purposes, and its income comes from holding companies the partnership owns. At present, these holdings companies are in Canada, US, or Bermuda, and we do not expect this to change for the foreseeable future. Payments from holding companies in Canada and Bermuda to a Canadian resident are not subject to withholding tax. Payments from holding companies in the US to a Canadian resident such as dividends may be subject to withholding taxes. The rate of withholding varies, amongst other factors, depending on the type of ownership account, and whether holders have provided their broker (or Brookfield Property Partners’ transfer agent in the case of registered unitholders) with the appropriate Internal Revenue Service (“IRS”) Form (Form W-8BEN, W-8BEN-E, W-8-ECI, W-8EXP, W-8IMY or W-9).  Note that as Brookfield Property Partners has not and is not expected to generate effectively connected income (ECI), we do not expect non-U.S. investors to be subject to U.S. tax withholding under IRC Section 1446(b) and 1446(f).

 

BPY Privatization Tax forms

BPYU Tax Information 

Other Tax Materials

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2019

GGP Acquisition  

Cost Basis for Units of Brookfield Property Partners Received as Special Dividend from Brookfield Asset Management

On April 15, 2013, Brookfield Asset Management Inc. paid a special dividend of one unit of Brookfield Property Partners L.P. (“BPY”) per 17.42 shares held by shareholders of record as of March 26, 2013. On April 15, 2013, the units commenced trading on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbols "BPY" and "BPY.UN," respectively. Generally, the tax cost of your BPY units received via the dividend should equal their fair market value on that date. Neither U.S. nor Canadian tax rules specify the method to determine fair market value in this situation. However, a commonly used method is the weighted average trading price of the units on the NYSE and TSX for the five trading days commencing on April 15, 2013 which is USD 21.8271 and CAD 22.3805 respectively.

General U.S. and Canadian Tax Summary

The following discussion is intended to provide a general explanation of the U.S. and Canadian tax treatment of holding Brookfield Property Partners units. For a more detailed and comprehensive discussion of the U.S. and Canadian tax treatment please refer to Brookfield Property Partners' most recent annual report on form 20-F.

This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular holder of Brookfield Property Partners units, and no representation with respect to the U.S. and Canadian income tax consequences to any particular holder is made. Consequently, holders of Brookfield Property Partners units are advised to consult their own tax advisors with respect to their particular circumstances.

Characterization of Brookfield Property Partners for Tax Purposes

Brookfield Property Partners L.P. is a Bermuda based limited partnership that is treated as a partnership for U.S. and Canadian tax purposes. Brookfield Property Partners is a publicly traded partnership that generally earns interest and dividends from subsidiary corporations in various jurisdictions that carry on the property businesses.

Eligibility for Tax-Deferred Plans

For U.S. investors, Brookfield Property Partners units should generally qualify for IRA and 401(k) accounts. For Canadian investors, Brookfield Property Partners units should constitute qualified investment for RRSPs, deferred profit sharing plans, RRIFs, registered education savings plans, registered disability savings plans and TFSAs.

Flow-Through Nature of Brookfield Property Partners

As a partnership, Brookfield Property Partners is a so-called "flow through" for U.S. and Canadian tax purposes. That is, Brookfield Property Partners is not subject to tax. Rather, its income (determined under U.S. tax rules using the U.S. dollar as its functional currency and under Canadian tax rules using the Canadian dollar as its functional currency) is subject to tax in the hands of its unitholders.

Income for U.S. and Canadian tax purposes is unlikely to be equal because of (i) the different currencies used to compute the taxable income for each jurisdiction and (ii) the difference in the tax rules of the two countries applicable to the income and expenses of Brookfield Property Partners and its subsidiaries for a particular taxation year. Also, taxable income may be less than the distributions for a particular period due to returns of capital paid by Brookfield Property Partners in that period.

Communication of Tax Information

After the end of Brookfield Property Partner's taxation year (December 31), the U.S. and Canadian taxable income of Brookfield Property Partners is determined and allocated to all unitholders that are in turn required to report such income on their respective tax returns. The allocation of U.S. taxable income will be communicated using Schedule K-1 (not a Form 1099). The allocation of Canadian taxable income is communicated using Form T5013 (not a Form T5).

U.S. Unitholders

We are required to use reasonable efforts to send a Schedule K-1 to all unitholders who are U.S. residents or who may have U.S. tax reporting obligations. Schedule K-1 forms are expected to be mailed to U.S. unitholders each year by the end of March for the prior tax year.

If you are a U.S. unitholder and did not receive your Schedule K-1 for the previous taxation year please contact us at (855) 521-8156 or at www.taxpackagesupport.com/bpy.

If you believe you have received a Schedule K-1 in error, wish to correct the K-1 you have been issued, or have any other questions related to your K-1, please contact Tax Package Support at (855) 521-8156.

Please note that we are required to issue K-1 forms to all U.S. unitholders, regardless if their units are held in a tax deferred account such as an IRA. If your units are held in an IRA, you generally do not need to report the amounts on your K-1 and you should keep your K-1 for your records.

Canadian Unitholders

Only registered Canadian unitholders will receive a T5013 directly from Brookfield Property Partners. All other Canadian unitholders (the vast majority of unitholders) should receive a T5013 from their Canadian broker. Brookfield Property Partners uses the CDS Innovations facility to provide information to Canadian brokers so that they can produce T5013 Forms. If you have any questions about Form T5013 you should contact your broker.

If you are a registered Canadian resident holder and did not receive your Form T5013 for the previous taxation year please contact (855) 521-8156 or at www.taxpackagesupport.com/bpy. If you are a beneficial Canadian resident unitholder and did not receive your Form T5013, please contact the brokerage firm with whom your units are held.

Relationship of Taxable Income to Distributions

The computation of Brookfield Property Partners' annual U.S. and Canadian taxable income for a particular taxation year is determined using U.S. and Canadian tax rules and will vary from year to year depending on the nature of the income of Brookfield Property Partners and its subsidiaries for the particular taxation year. As a result, the cash a unitholder receives from Brookfield Property Partners in any given year may not match its allocation of taxable income.

Tax Treatment of Distributions

Distributions received by Brookfield Property Partners' unitholders are not directly taxable in and of themselves (the income allocated to a particular unitholder may be, depending on that unitholder’s tax profile). However, distributions received do reduce the tax basis of Brookfield Property Partners units.

Withholding Tax Treatment of Distributions

The income Brookfield Property Partners earns from underlying subsidiaries includes dividends and interest paid by subsidiaries in jurisdictions that levy withholding tax. Since Brookfield Property Partners is a "flow-through" for U.S. and Canadian income tax purposes, a portion of the income may be subject to withholding taxes levied by jurisdictions such as Canada and the U.S. (including back-up withholding tax). The rate of withholding varies, depending on a holder’s country of tax residence, type of ownership account, and whether holders have provided their broker (or Brookfield Property Partners’ transfer agent in the case of registered unitholders) with the appropriate Internal Revenue Service (“IRS”) Form (Form W-8BENE, W-ECI, W-8EXP, W-8IMY or W-9) and Canada Revenue Agency (“CRA”) Form (Form NR301). The type of documentation for U.S. withholding tax purposes will differ depending on a holder’s tax profile for U.S. tax purposes. We encourage holders to submit the appropriate IRS Form and CRA Form to their broker (or Brookfield Property Partners’ transfer agent in the case of registered unitholders) so their account can be (and will continue to be) certified and the most appropriate rates of withholding can be applied to distributions.

Computation of Tax Basis of Units

For U.S. and Canadian residents, in general, a unitholder's tax basis in Brookfield Property Partners units should equal the sum of (i) the amount paid to acquire the units (or initial value of the special dividend from Brookfield) and (ii) the net taxable income allocated to the unitholder, minus the cash distributions received.

For U.S. residents, the information provided with Schedule K-1 should assist with (ii), above.

For Canadian residents, the tax basis of units is determined in Canadian dollars so all three components should be determined in Canadian dollars. Brookfield Property Partners does not have sufficient information to track the tax basis of units for each individual holder. Depending upon the particular taxation year, the T5013 will report various sources of income and expenses in a number of boxes on the form. The net taxable income allocated is the sum of the various income and expenses.

Unitholders are obligated to accurately compute the tax basis of their Brookfield Property Partners units.

Other Tax Matters

Effectively Connected Income (ECI)
Brookfield Property Partners is not expected to generate ECI, a concept relevant to non
U.S. investors. Brookfield Property Partners' U.S. operations are carried out through wholly owned U.S. resident subsidiary corporations.

Unrelated Business Taxable Income (UBTI)
Brookfield Property Partners is not expected to generate UBTI, a concept relevant to
U.S. tax exempt investors. Brookfield Property Partners' operations are carried out through wholly owned subsidiary corporations. Similarly, Brookfield Property Partners is not expected to generate debt financed UBTI.

Foreign Investment Real Property Tax Act (FIRPTA)
Non-U.S investors that own 5% or less of Brookfield Property Partners publicly traded units should not be subject to FIRPTA taxation on a disposition of their units. Investors that own more than 5% of Brookfield Property Partners publicly traded units may be subject to FIRPTA taxation on a disposition of their units.

Specified Foreign Property

For the purpose of reporting foreign property by Canadian investors, pursuant to section 233.3 of the Canadian Income Tax Act, Brookfield Property Partners is not a specified foreign property and therefore does not need to be reported on Form T1135 Foreign Income Verification Statement.

Note: The information provided on this website does not constitute tax advice and is not intended to be a substitute for tax planning. Investors are encouraged to consult their tax advisors concerning the income tax consequences particular to their receipt, ownership and disposition of units, as well as any consequences under the laws of any other taxing jurisdiction.

Tax Questions and Answers

Why do I receive a 1099 as well as a K-1 and what is the significance of each?
Why haven’t I received a K-1?
I believe my K-1 is incorrect.
I haven’t received my T5013. Can you send a replacement form?
Who applies the withholding tax? Why don’t I receive the full distribution amount?
How can I obtain a tax credit for foreign taxes withheld?
Does Brookfield Property Partners have a Quebec Tax ID Number?
What does BMU signify?
My tax software requires that I insert a six-digit Tax Shelter (TS) number. What is Brookfield Property Partners' TS number?

CONTACT INFORMATION

Investor Inquiries

Keren Dubon 
Analyst, Investor Relations
Tel: 855-212-8243
[email protected]

Shareholder Inquiries

Questions relating to distributions, transfer of units, address changes or unit certificates for the Class A preferred units, Series 1-3 (NASDAQ: BPYPP, BPYPO, BPYPN) should be directed to our transfer agent, Equiniti Trust Company, LLC: 

Equiniti Trust Company, LLC. 

6201 15th Avenue
Brooklyn, NY 11219

Website: https://equiniti.com/us/ast-access


EQ Shareholder Services Call Center:
Hours: 8 AM – 8 PM ET Monday through Friday

Toll Free: 800-937-5449
Local & International: 718-921-8124

Shareholder Inquiries

Questions relating to distributions, transfer of units, address changes or unit certificates for the Class A BPY (BPY.PR.A), BPO preferred units and BOP Split Series 1-4 (TSX: BPS.PR.U, BPS.PR.A, BPS.PR.B and BPS.PR.C) should be directed to our transfer agent, TSX Trust Company: 

TSX Trust Company

301 - 100 Adelaide Street West, Toronto, ON M5H 4H1

Website: [email protected]

Toll-free: 1-800-387-0825 (in the U.S. and Canada)
Tel: +1-416-682-3860 (Outside of North America)
Fax: 1-888-249-6189
Email: [email protected]
Website: www.tsxtrust.com