2025›Partner’s Instructions for Schedule K-1 (Form 1065)
What’s New
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
Schedule K-1, box 13, code X. Public Law 119-21, commonly known as the One Big Beautiful Bill Act, expanded section 181 to include certain qualified sound recording production expenses. Code X has been updated to include the additional expense.
Schedule K-1, box 19, distributions. Instructions were updated to explain how the partnership separately coded different categories of distributions reported to you in box 19 of Schedule K-1. See Box 19 , later.
Schedule K-1, box 20, code ZZ. P.L. 119-21 added section 1062, gain from the sale or exchange of qualified farmland property to qualified farmers. For tax years beginning after July 4, 2025, a partner can make an election under section 1062 to pay the tax on the gain from the sale or exchange of qualified farmland property to qualified farmers in four equal, annual installments. See Code ZZ under Box 20, later, for additional information.
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