Form 5472 Cost Sharing Arrangements (CSA)

Every foreign-owned disregarded U.S. LLC must file a Form 5472 with a proforma Form 1120 every tax year.
Form 5472 contains multiple parts, one such part is the disclosure of any Cost Sharing Arrangements (CSA) between the reporting corporation and related parties.
In this video, I cover what is a CSA and the likelihood it will apply to a foreign-owned U.S. DRE. A company must also assess whether any joint activities give rise to a partnership or joint venture under U.S. federal tax laws.
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[@aa697]

What if the foreign entity DRE contributes capital into the CSA in the US?

[@aa697]

So what do you file based on a CSA with a JV?

[@luisdatec]

Thanks ! That helps a lot ! I am not sure if the LLC has a foreign sole propietor needs to fill this part or leave in blank ?

[@JasonDKnott]

It depends upon whether you have any CSAs with foreign related parties

[@luisdatec]

@@JasonDKnott thanks. No, is unique foreign owner, I didn't filled that section. I already prepared for this year, I will contact you for a revision and better preparation for the next year.

[@thevictor6209]

@@luisdatec Hello, do I have to fill out the CSA section for a single member LLC as non-us resident? Also I didn’t make any transaction between me and the LLC

[@luisdatec]

@@thevictor6209 I was checking about that, and you can leave in blank that part if you are the unique foreign owner. However, you should check with an accounting.

[@thevictor6209]

@@luisdatec Okay, thank you. Besides I'm late, some people say not to send because I don't have any transaction to declare. What do you think?

[@thevictor6209]

Hello, do I have to fill out the CSA section for a single member LLC as non-us resident? Also I didn’t make any transaction between me and the LLC

[@irshado9241]

Hi Jason
I bought your Course from Udemy
And had a question, In Shedule K , form 1120 - Part 12 In this form you had given a figure of $85,000 as answer , shall i also type the same figure?
I had no revenue in the year of 2021 should I mention that the distribution amount is 0?
For the CSA section should I leave it empty or choose NO?