Update to Instructions for Form 7217 regarding new reporting codes on box 19, Schedule K-1 (Form 1065).

For tax year 2025 and subsequent years, the data for reporting on certain lines of Form 7217 come from new codes on box 19 of Schedule K-1 (Form 1065). Below are the changes (shown in bold) to the Instructions for Form 7217 which will appear in the December 2026 revision.

Line 3: Enter the partnership’s aggregate basis in the distributed property (other than cash, but including marketable securities treated as money under section 731(c)) immediately before the distribution, taking into account any adjustments under sections 732(d), 734(b), or 743(b), as applicable. The partnership will report this information to you on your Schedule K-1 (Form 1065), box 19, codes B, C, and G; or, if applicable, in a section 732(d) statement attached to your Schedule K-1 (Form 1065). For marketable securities, amounts will be reported on the statement accompanying box 19, codes A and F. The amount entered on line 3 should equal the total amount of Part II, line B, column (b).

Line 5a: Enter the amount of money (other than marketable securities treated as money under section 731(c)) you received or were deemed to receive in the distribution. This amount includes deemed distributions of money under section 752(b). The partnership will report money distributed to you on your Schedule K-1 (Form 1065), box 19, codes A, D, and F. In determining the amount of money to report on line 5a, do not include any marketable securities reported on your Schedule K-1 (Form 1065), box 19, codes A and F.

Line 5b: Enter the fair market value of the marketable securities (as defined in section 731(c)) you received in the distribution. The partnership will report this information to you on a statement attached to your Schedule K-1 (Form 1065), box 19, codes A and F.