Schedule K-1 - Codes (Form 1065) - Partnership - Part 2022

Sep 19, 2026

Schedule K-1 Codes (Form 1065) - Partnership lists specific code items for partnership tax reporting. It guides how to identify ordinary business income (loss), rental income (loss), dividends, royalties, and capital gains by referencing relevant Form 1040, Schedule E, Schedule D, and related worksheets. The schedule also covers other income (loss) codes, deductions, section 179, credits, AMT items, and tax-exempt or nondeductible categories, with cross-references to applicable instructions and page locations.

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Schedule K-1 Codes (Form 1065)—Partnership

Ordinary business income (loss) and passive/nonpassive reporting

Net rental and other rental income (loss)

Guaranteed payments, interest, dividends, royalties

Capital gains categories and related code items

Other income (loss) codes and deductions (section 179)

Credits, AMT items, and tax-exempt income/nondeductible expenses

Schedule K-1 Codes (Form 1065)—Partnership Draft as of December 9, 2022 | Box Number / Item | | Where to report or where to find further reporting information. Page numbers refer to Instructions for Schedule K-1 (Form 1065). | | --- | --- | --- | | 1. Ordinary business income (loss) . Determine whether the income (loss) is passive or nonpassive and enter on your return as follows. | | | | | Passive loss | See page 9 | | | Passive income | Schedule E (Form 1040), line 28, column (h) | | | Nonpassive loss | See page 9 | | | Nonpassive income | Schedule E (Form 1040), line 28, column (k) | | 2. Net rental real estate income (loss) | | See page 9 | | 3. Other net rental income (loss) | | | | | Net income | Schedule E (Form 1040), line 28, column (h) | | | Net loss | See Instructions for Form 8582 | | 4a. Guaranteed payment services | | See Instructions for Schedule E (Form 1040) | | 4b. Guaranteed payment capital | | See Instructions for Schedule E (Form 1040) | | 4c. Guaranteed payment total | | See page 9 | | 5. Interest income | | Form 1040 or 1040-SR, line 2b | | 6a. Ordinary dividends | | Form 1040 or 1040-SR, line 3b | | 6b. Qualified dividends | | Form 1040 or 1040-SR, line 3a | | 6c. Dividend equivalents | | See page 10 | | 7. Royalties | | Schedule E (Form 1040), line 4 | | 8. Net short-term capital gain (loss) | | Schedule D (Form 1040), line 5 | | 9a. Net long-term capital gain (loss) | | Schedule D (Form 1040), line 12 | | 9b. Collectibles (28%) gain (loss) | | 28% Rate Gain Worksheet, line 4 (Schedule D instructions) | | 9c. Unrecaptured section 1250 gain | | See page 10 | | 10. Net section 1231 gain (loss) | | See page 10 | | 11. Other income (loss) | | | | | Code A. Other portfolio income (loss) | See page 10 | | | Code B. Involuntary conversions | See page 11 | | | Code C. Section 1256 contracts & straddles | Form 6781, line 1 | | | Code D. Mining exploration costs recapture | See Pub. 535 | | | Code E. Cancellation of debt | See page 11 | | | Code F. Section 743(b) positive adjustments | See page 11 | | | Code G. Reserved for future use | | | | Code H. Section 951(a) income inclusions | See page 11 | | | Code I. Other income (loss) | See page 11 | | 12. Section 179 deduction | | See page 12 | | 13. Other deductions | | | | | Code A. Cash contributions (60%) | See page 12 | | | Code B. Cash contributions (30%) | See page 12 | | | Code C. Noncash contributions (50%) | See page 12 | | | Code D. Noncash contributions (30%) | See page 13 | | | Code E. Capital gain property to a 50% organization (30%) | See page 13 | | | Code F. Capital gain property (20%) | See page 13 | | | Code G. Contributions (100%) | See page 13 | | | Code H. Investment interest expense | Form 4952, line 1 | | | Code I. Deductions—royalty income | Schedule E (Form 1040), line 19 | | | Code J. Section 59(e)(2) expenditures | See page 13 | | | Code K. Excess business interest expense | See page 13 | | | Code L. Deductions—portfolio income (other) | Schedule A (Form 1040), line 16 | | | Code M. Amounts paid for medical insurance | Schedule A (Form 1040), line 1; or Schedule 1 (Form 1040), line 17 | | Box Number / Item | | Where to report or where to find further reporting information. Page numbers refer to Instructions for Schedule K-1 (Form 1065). | | --- | --- | --- | | | Code N. Educational assistance benefits | See page 13 | | | Code O. Dependent care benefits | Form 2441, line 12 | | | Code P. Preproductive period expenses | See page 13 | | | Code Q. Reserved for future use | | | | Code R. Pensions and IRAs | See page 13 | | | Code S. Reforestation expense deduction | See page 14 | | | Codes T through U. Reserved for future use | | | | Code V. Section 743(b) negative adjustments | See page 14 | | | Code W. Other deductions | See page 14 | | | Code X. Reserved for future use | | | 14. Self-employment earnings (loss) | | | | | Note. If you have a section 179 deduction o

FAQs

How do I report ordinary business income (loss) on Schedule K-1 (Form 1065)?

Determine whether the income (loss) is passive or nonpassive, then report using the indicated routing. Passive items refer to the referenced page or Schedule E/Form 1040 lines; nonpassive items follow the same guidance.

Where are interest, dividends, and qualified dividends reported?

Interest income points to Form 1040 or 1040-SR line 2b. Ordinary dividends and qualified dividends point to Form 1040 or 1040-SR line 3b and line 3a, respectively, with dividend equivalents referencing the specified page.

Which codes cover other income (loss) and where can more details be found?

Other income (loss) is organized under Code A through Code I with different categories. Each code includes cross-references to page numbers, related forms (such as Form 6781), publications (such as Pub. 535), and instructions for further reporting.

Sep 19, 2026

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