8865 Sch. G

Statement of Application of the Gain Deferral Method Under Section 721(c)

Agency
IRS
Revision
Rev. December 2021
Fillable fields
203
Pages
2
Official source
IRS form page
Checked
October 21, 2026
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Page 1 of form 8865 Sch. G

Schedule G (Form 8865): Application of the Gain Deferral Method Under Section 721(c)

Schedule G (Form 8865) is the Statement of Application of the Gain Deferral Method Under Section 721(c). The form says to attach it to Form 8865 and to see the Instructions for Form 8865. It reports section 721(c) property, the remaining built-in gain on that property, remedial income and gain recognized, and how partnership items for that property are allocated.

The header names the person filing Form 8865, the partnership and the U.S. transferor, with boxes for a successor partnership and a successor U.S. transferor. A filing year box shows whether the schedule covers the tax year of the gain deferral contribution or annual reporting.

The form says a Yes to any Part V question 1 through 6b means completing Schedule H, and a contribution of additional section 721(c) property means completing Schedule O. You can fill out Schedule G (Form 8865) free in your browser on this page and download the result without an account.

What's on Schedule G (Form 8865)

Part I: Section 721(c) property

Lines 1 to 4 list each property with its tax year of contribution, description, recovery period, and fair market value, basis and built-in gain on the date of contribution. Column 7 has boxes for acceleration, termination, successor, tax disposition and section 367 transfer events.

Part II: Built-in gain and gain recognized

For each Part I line: remaining built-in gain at the beginning and end of the tax year, remedial income allocated to the U.S. transferor, and gain recognized due to an acceleration event or a section 367 transfer.

Part III: Allocation percentages

Percentages of income, gain, deduction and loss allocated to the U.S. transferor, related domestic partners and related foreign partners for each property.

Part IV: Items allocated to the U.S. transferor

Book and tax amounts of income, gain, deduction and loss allocated to the U.S. transferor for each property.

Part V: Additional information

Yes or No questions on acceleration, termination and successor events, tax dispositions of partnership interests, section 367 transfers, additional contributions and waivers of treaty benefits.

Part VI: Supplemental information

Open space for supplemental information, with a note to see the instructions.

How to fill out Schedule G (Form 8865)

  1. 1

    Header

    Enter the name and identification number of the person filing Form 8865, the partnership's name, EIN if any and reference ID number, and the U.S. transferor's name. Check the successor boxes if they apply, and mark the filing year as the tax year of the gain deferral contribution or annual reporting.

  2. 2

    Part I

    List each section 721(c) property on lines 1 to 4 with its values on the date of contribution, and check any column 7 event that occurred. Line 4a carries properties from an additional statement. Then answer whether the tiered partnership rules of Regulations section 1.721(c)-3(d) apply.

  3. 3

    Part II

    For each Part I line, enter the remaining built-in gain at the start and end of the tax year, remedial income allocated to the U.S. transferor and any gain recognized. The form says the total includes amounts on any attached statement.

  4. 4

    Parts III and IV

    Enter the allocation percentages for the U.S. transferor, related domestic partners and related foreign partners, then the book and tax amounts allocated to the U.S. transferor.

  5. 5

    Part V

    Answer questions 1 to 7b. The form says a Yes to any question 1 through 6b means completing Schedule H, and a Yes on 6a means completing Schedule O, adding the property to Parts I through IV, and answering 6b.

  6. 6

    Part VI and attach

    Add any supplemental information in Part VI, then attach the schedule to Form 8865.

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Where it goes and related schedules

Where it goes

The form says to attach it to Form 8865. It prints no separate mailing address and no due date of its own.

Instructions

The form points to the Instructions for Form 8865 and to www.irs.gov/Form8865 for instructions and the latest information.

Filing year

A header box shows whether the schedule is for the tax year of the gain deferral contribution or for annual reporting.

Schedules H and O

A Yes to Part V questions 1 through 6b leads to Schedule H. A Yes on line 6a also leads to Schedule O.

Who fills out Schedule G (Form 8865)?

  • Person filing Form 8865

    The first header line holds the name and identification number of the person filing Form 8865, the return this schedule is attached to.

  • U.S. transferor

    The header has a line for the name of the U.S. transferor, with a note to see the instructions, and a box for a successor U.S. transferor.

  • The partnership

    The partnership's name, its EIN if any, and a reference ID number go in the header, with a box for a successor partnership.

  • Related partners in the allocations

    Parts III and IV show how income, gain, deduction and loss from section 721(c) property are split among the U.S. transferor, related domestic partners and related foreign partners.

The schedule is attached to Form 8865, and its header names the parties involved in the section 721(c) contribution.

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Questions about Form 8865 Sch. G

What is Schedule G (Form 8865) used for?

Its title says it is a statement of application of the gain deferral method under section 721(c). It reports section 721(c) property, remaining built-in gain, remedial income, gain recognized and allocations of partnership items for that property.

Is Schedule G filed on its own?

No. The form says to attach it to Form 8865.

When is Schedule H needed?

Part V says to complete Schedule H if the answer is Yes to any question 1 through 6b.

What if there are more than four properties?

Part I has four lines plus line 4a for properties from Part I additional statements, and the form says the Part II total includes amounts on an attached statement.

Where are the instructions?

The form points to the Instructions for Form 8865 and to www.irs.gov/Form8865.