How to Complete IRS Form 8865 for a Category 4 Filer

IRS Form 8865 is filed by U.S. persons when they have a direct or constructive ownership interest in a foreign partnership.
In this video, I cover an example of a Form 8865 filing for a Category 4 filer.
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[@movie30000]

Hi, Jason. Thank you so much for educating us.

[@JasonDKnott]

Glad it was helpful. Thank you for the support!

[@tamiarbogast4516]

Excellent tutorial

[@JasonDKnott]

Thank you! I'm glad it was helpful.

[@BethanyBassett]

This was so helpful; thank you!

[@JasonDKnott]

You're welcome!

[@giovannacorral9721]

I have a question: If the value is 0 at the end of the year because he sold all the stocks, and the gain was under 5k, is it necessary to report? Also the last year, the client did not election, what can I do? Thank you!

[@kojimask]

If you acquire and interest in a foreign partnership of say 1/3 and another U.S. person acquires a 1/3 interest in the same year, do you file as a Category 2 filer or as a Category 4 filer. Important because if a fiscal year foreign partnership, Cat 2 filer would not have to report until the partnership year the ends within the U.S. person's taxable year (Calendar) but if a Cat 4 filer, must file in the year the acquisition takes place. At least that's my understanding. Can you be both a Cat 2 and 4 at the same time?