2016 Schedule K-1 Tax Packages are now available online for The Carlyle Group’s (“CG”) public unitholders. Please click the link below to access your tax package on CG's Tax Package Support website.
For assistance related to the Tax Package Support website, or if you have questions about your Schedule K-1, please contact CG’s Tax Package Support Service using one of the following methods:
Phone: (855) 886-9762 (Within US)
Phone: (972) 248-5396 (Outside US)
Mail: The Carlyle Group L.P.
c/o Tax Package Support
PO Box 799060
Dallas, TX 75379
To obtain a copy of your Schedule K-1 Tax Package for years prior to 2016 please contact CG's Tax Package Support Service at (855) 886-9762. Alternatively, Schedule K-1 Tax Packages for the prior two tax years are also available electronically by accessing CG's Tax Package Support
Yes. Every unitholder of The Carlyle Group L.P. will receive a Schedule K-1 reflecting their share of the partnership's income, gain, loss, or deduction for the period the units are held.
The 2016 unitholder Schedule K-1 Tax Packages are expected to be mailed on or around March 29, 2017. In addition, you may obtain your Schedule K-1 Tax Package electronically by accessing CG's Tax Package Support website www.taxpackagesupport.com/carlyle or by calling CG's Tax Package Support call center at (855) 886-9762. Electronic Schedule K-1 Tax Packages from both the Tax Package Support website and call center are expected to be available on or around March 24, 2017.
Your Schedule K-1 is prepared based upon information provided to us by your broker. If you determine any of the information to be incomplete or inaccurate, please contact CG Tax Package Support at (855) 886-9762. You can also request ownership schedule changes on CG's Tax Package Support website www.taxpackagesupport.com/carlyle by following the link under Request Changes. A revised Schedule K-1 is generally issued within 24 hours of reporting the issue to Tax Package Support. Changes to this information should also be requested through your broker.
CG does not issue Forms 1099 to its unitholders. Although CG is publicly traded, it is important to note that CG is a limited partnership, not a corporation. The units you own in CG represent a limited partner interest in a partnership. As a limited partner in a partnership, you are taxed on your allocable share of CG's income. Your allocable share of CG's income, gain, loss, deduction, credits and cash distributions are reported to you annually on Schedule K-1.
Although commonly (and mistakenly) referred to as "dividends," cash payments made by CG to its unitholders are considered a partnership distribution under the tax laws of the United States. While the distribution of cash from CG generally may not be a taxable event for a unitholder, the Schedule K-1 you receive each year will inform you about the amount of taxable income that CG allocates to you in a given year for U.S. tax purposes.
No. Each unitholder should maintain his or her own individual tax records. CG will provide an estimate of the adjustments to the tax basis of units sold as part of the Schedule K-1 Tax Package. However, this estimate is for informational purposes only, and may not represent all required basis adjustments to your units.
As a limited partner in a partnership, you are taxed on your allocable share of CG's income, gain, loss, deduction and/or credits. Your allocable share of these items reported to you on Schedule K-1 must be included on your current tax year tax return regardless of the trading price of the units or whether cash distributions are made to you. You will also be required to report on your tax return any gain or loss when you dispose of CG units. The gain or loss will depend upon your tax basis and the price at which you sell the units.
No. The nature of CG's current income and assets do not allow CG to be treated as a Qualified PTP for RIC purposes.
While distributions from U.S. partnerships are generally not subject to U.S. withholding, certain U.S. source income (such as dividends and some interest paid by U.S. corporations) which are allocable to non-U.S. persons are subject to U.S. withholding. As a U.S. partnership, cash payments made by CG to its unitholders are considered partnership "distributions" and not "dividends." However, CG will directly and indirectly own investments in U.S. corporations. Non-U.S. persons may receive U.S. Form 1042-S, Foreign Persons U.S. Income Subject to Withholding, reporting certain U.S. source income that was included on your Schedule K-1. You should consult your tax advisor for additional guidance.
Certain U.S. source income allocable to non-U.S. persons is subject to U.S. withholding. The amount reported on Line 19A includes your allocable share of gross distributions. The actual cash distributions you receive are reduced by U.S. withholding taxes, if any.
When CG declares a quarterly cash distribution to its unitholders, CG releases to its transfer agents and other nominees, a Qualified Notice. Copies of those notices are available in the Public Investors section of the CG website, under Distribution History.
CG invests indirectly in foreign entities. Distributions from certain of these entities are subject to income tax and withholding taxes by the foreign jurisdictions. These foreign taxes may be creditable against your U.S. tax liability, but please consult your tax advisor regarding these calculations.
No. However, CG may invest indirectly in entities that are treated as PFICs. CG expects to make "QEF" elections such that the ordinary income and net capital gains earned by these PFICs will be included currently in your share of income reported on your Schedule K-1. In cases where CG does not qualify to make this election, CG will report all necessary items as a footnote to your Schedule K-1.
For the tax year 2016, CG may generate some amount of UBTI, which is expected to be immaterial in proportion to CG's overall income. The detailed statements attached to your Schedule K-1 will include information regarding your share of UBTI, if any.
As a general matter, CG's investments which would otherwise give rise to ECI are expected to be owned through a subsidiary corporate entity to minimize or eliminate any ECI at CG. Due to the nature of some of CG's investments, CG may generate FIRPTA in the future. To the extent necessary, information will be provided to you in your Schedule K-1 Tax Package. Please consult your tax advisor.
For tax years beginning after 2012, Internal Revenue Code (“IRC”) Section 1411 imposes a 3.8% surtax on certain passive investment income of individuals, trusts and estates. Your share of income reported in CG’s Schedule K-1 and any gain on the sale of CG units may be subject to the surtax. Generally, gross income derived from a trade or business that is a passive activity to the taxpayer is included in net investment income subject to the surtax. You should consult your tax advisor concerning the impact of IRC Section 1411 to you.
We currently expect that the investment in CG is not likely to subject you to U.S. state filings other than your state of residency. Please consult your tax advisor.
Please call (202) 729-5800, or submit your question using the form below.