Section 1061 Worksheets and Tables
1225 Publ 541 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
Section 1061 Worksheet A
| Section 1061 Worksheet A: API 1-Year Distributive Share Amount and API 3-Year Distributive Share Amount (Completed by a pass-through entity that has issued an API and attached to the Schedule K-1.) |
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|---|---|---|
| Pass-Through Entity Name EIN API Holder SSN or TIN |
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| Line | Description | API Gains and (Losses)* |
| 1 | Net long-term capital gain (loss) from Schedule K-1 (Form 1065), box 9a; Schedule K-1 (Form 1120-S), box 8a; or Schedule K-1 (Form 1041), box 4a(a) |
$ |
| 2 | Capital gains or (losses) included in line 1 that are not subject to section 1061 under Regulations section 1.1061-4(b)(7) |
$ |
| 3 | Capital interest gains or (losses) under Regulations section 1.1061-3(c)(2) included in line 1(b) |
$ |
| 4 | API 1-Year Distributive Share Amount Subtract the sum of lines 2 and 3 from line 1. |
$ |
| 5 | Amounts included in line 4 that would not be treated as long-term gain or (loss) if 3 years is substituted for 1 year under paragraphs (3) and (4) of section 1222 |
$ |
| 6 | Any Lookthrough Rule adjustment applicable to the disposition of an API by the pass-through entity under Regulations section 1.1061-4(b) (9)(c) |
$ |
| 7 | API 3-Year Distributive Share Amount Gain or (Loss) Subtract the sum of lines 5 and 6 from line 4. |
$ |
| * Gains are entered as positive and losses are entered as negative. (a)Calculation for collectibles gains or unrecaptured section 1250 gains. If a partnership, S corporation, estate, or trust has collectibles gain or loss or unrecaptured section 1250 gain that is treated as API gain or loss, the pass-through entity must provide the API holder with information to determine whether collectibles gain or unrecaptured section 1250 gain is recharacterized under section 1061. The pass-through entity must provide the API holder with information that enables the API holder to separately determine its API 1-Year Distributive Share Amount and its API 3-Year Distributive Share Amount for its collectibles gain or loss and/ (b)Capital interest gains and losses. See Regulations section 1.1061-3(c)(2) for computation of capital interest gains and losses. (c)Lookthrough Rule information. See Regulations section 1.1061-4(b)(9) for computation of Lookthrough Rule amount adjustment. |
Publication 541 (12-2025) 27
Section 1061 Worksheet B
| Section 1061 Worksheet B: Owner Taxpayer Reporting of Recharacterization Amount (The owner taxpayer must complete and attach to their return.) |
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|---|---|---|
| Taxpayer Name SSN or TIN |
Taxpayer Name SSN or TIN |
Taxpayer Name SSN or TIN |
| Line | Description | Gains and (Losses)* |
| 1 | API 1-Year Distributive Share Amount from Worksheet A, line 4, which is attached to Schedule K-1. Combined net amount from all APIs and increased by the API 1-Year Distributive Share Amount of collectibles gain or loss and/ unrecaptured section 1250 gain, if applicable. |
$ |
| 2 | API 1-Year Disposition Amount from Table 1, line 4. Combined net amount from all APIs. |
$ |
| 3 | 1-Year Gain Amount Add lines 1 and 2. If the sum of line 1 plus line 2 is zero or less, enter zero on line 3 and skip to line 8. |
$ |
| 4 | API 3-Year Distributive Share Amount from Worksheet A, line 7, which is attached to the Schedule K-1. Combined net amount from all APIs, increased by the amount of API 3-Year Distributive Share Amount of collectibles gain or loss and/ recaptured section 1250 gain, if applicable. |
$ |
| 5 | API 3-Year Disposition Amount from Table 2, line 4. Combined net amount for all APIs. |
$ |
| 6 | 3-Year Gain Amount Add lines 4 and 5. If the sum of line 4 plus line 5 is zero or less, enter zero. |
$ |
| 7 | Recharacterization Amount (treat as short-term capital gain) Subtract line 6 from line 3. If zero or less, enter zero. |
$ |
| 8 | Section 1061(d) Recharacterization Amount (as determined in Regulations section 1.1061-5(c)). |
$ |
| 9 | Section 1061 Adjustment to Form 8949 Add lines 7 and 8. (This amount is an adjustment to increase short-term capital gain and decrease long-term capital gain amounts on Form 8949, Parts I and II. See_The Owner Taxpayer Reporting of_ the Recharacterization Amount on Schedule D for instructions on how to report adjustments on tax return.) |
$ |
| 10** | (a) Total collectibles gain with respect to any interest in a pass-through entity (per Schedule K-1 (Form 1065), box 9b; Schedule K-1 (Form 1120-S), box 8b; Schedule K-1 (Form 1041), box 4b) |
$ |
| 10** | (b) Amount of collectibles gain included in the recharacterization amount |
$ |
| 10** | (c) Amount of collectibles gain entered in the 28% Rate Gain Worksheet (see line 18 of the Schedule D (Form 1040) or line 28c of the Schedule D (Form 1041)) |
$ |
| 11*** | (a) Total unrecaptured section 1250 gain with respect to any interest in a pass-through entity (per Schedule K-1 (Form 1065), box 9c; Schedule K-1 (Form 1120-S), box 8c; Schedule K-1 (Form 1041), box 4c) |
$ |
| 11*** | (b) Amount of unrecaptured section 1250 gain included in the recharacterization amount |
$ |
| 11*** | (c) Amount of unrecaptured section 1250 gain entered in the Unrecaptured Section 1250 Gain Worksheet (see line 19 of the Schedule D (Form 1040) or line 18b of the Schedule D (Form 1041)) |
$ |
| * Gains are entered as positive and losses are entered as negative. ** The sum of the amount entered on line 10(b) plus the amount entered on line 10(c) must equal the amount entered on line 10(a) (see_The Owner Taxpayer_ Reporting of Collectibles Gain and Unrecaptured Section 1250 for instructions on how to report adjustments on tax return). *** The sum of the amount entered on line 11(b) plus the amount entered on line 11(c) must equal the amount entered on line 11(a) (see_The Owner Taxpayer_ Reporting of Collectibles Gain and Unrecaptured Section 1250 for instructions on how to report adjustments on tax return). |
28 Publication 541 (12-2025)
Section 1061 Table 1
| Section 1061 Table 1: API 1-Year Disposition Amount (Separately computed for each API. Required to be attached to the owner taxpayer’s tax return.) |
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|---|---|---|
| Name of Owner Taxpayer SSN/ Name of Pass-Through Entity Pass-Through EIN |
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| Line | Description | Gains and (Losses)* |
| 1 | Long-term capital gains and losses recognized on the disposition by the owner taxpayer, including long-term capital gain computed under the installment method that is taken into account during the tax year of all or a portion of any API held for more than 1 year including a disposition to which the Lookthrough Rule in Regulations section 1.1061-4(b)(9) applies. |
$ |
| 2 | Long-term capital gain and loss recognized by the owner taxpayer on a disposition with respect to an API during the tax year that is treated under section 731(a) as gain or loss from the sale or exchange of a partnership interest held for more than 1 year. |
$ |
| 3 | Long-term capital gains and losses recognized by the owner taxpayer on the disposition of distributed API property (taking into account deemed exchanges under section 751(b)) during the tax year that has a holding period of more than 1 year but not more than 3 years to the distributee owner taxpayer on the date of disposition, excluding items described in Regulations section 1.1061-4(b)(7). |
$ |
| 4 | API 1-Year Distributive Share Amount Combine lines 1 through 3. Enter amount on line 2 of Worksheet B. |
$ |
| * Gains are entered as positive and losses are entered as negative. |
Section 1061 Table 2
| Section 1061 Table 2: API 3-Year Disposition Amount (Separately computed for each API. Required to be attached to the owner taxpayer’s tax return.) |
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|---|---|---|
| Name of Owner Taxpayer SSN/ Name of Pass-Through Entity Pass-Through EIN |
||
| Line | Description | Gains and (Losses)* |
| 1 | Long-term capital gains and losses recognized on the disposition by the owner taxpayer, including long-term capital gain computed under the installment method that is taken into account for the tax year of all or a portion of any API held for more than 3 years and to which the Lookthrough Rule in Regulations section 1.1061-4(b)(9) does not apply. |
$ |
| 2 | Long-term capital gains and losses recognized by an owner taxpayer on the disposition during the tax year of all or a portion of an API that has been held for more than 3 years in a transaction to which the Lookthrough Rule in Regulations section 1.1061-4(b)(9) applies, less any adjustments required under the Lookthrough Rule in Regulations section 1.1061-4(b)(9)(ii). |
$ |
| 3 | Long-term capital gains and losses recognized on a distribution with respect to an API during the tax year that is treated under section 731(a) as gain or loss from the sale or exchange of a partnership interest held for more than 3 years. |
$ |
| 4 | API 3-Year Distributive Share Amount Combine lines 1 through 3. Enter amount on line 5 of Worksheet B. |
$ |
| * Gains are entered as positive and losses are entered as negative. |
Publication 541 (12-2025) 29
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