2025›Partner’s Instructions for Schedule K-1 (Form 1065)›General Instructions
Elections
Instruction 1065 (Schedule K-1) — Partner's Instructions for Schedule K-1 (Form 1065), Partner's Shares of Income, Credits, Deductions, etc. · 2026-10-03 edition · updated 2026-10-04 · United States
Generally, the partnership decides how to figure taxable income from its operations. However, certain elections are
2 Partner's Inst. for Sch. K-1 (Form 1065) (2025)
made by you separately on your income tax return and not by the partnership. These partner-level elections include those made under the following code sections.
Section 59(e) (deduction of certain qualified expenditures ratably over the period of time specified in that section). For details, see Code J under Box 13, later.
Section 108(b)(5) (election related to reduction of tax attributes due to exclusion from gross income of discharge of indebtedness).
Section 263A(d) (preproductive expenses). See Code P under Box 13, later.
Section 469(c)(7)(A) (aggregation election by real estate professional). See Passive Activity Limitations, later.
Section 617 (deduction and recapture of certain mining exploration expenditures).
Section 901 (foreign tax credit). See Schedule K-3.
Section 1062 (election to pay tax in installments for sale of qualified farmland property). See Code ZZ under Box 20, later.
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