About Form 1065, U.S. Return of Partnership Income

 

Partnerships file an information return to report their income, gains, losses, deductions, credits, etc.

A partnership does not pay tax on its income but "passes through" any profits or losses to its partners. Partners must include partnership items on their tax or information returns.


Current Revision


Recent Developments


Schedules

Partnerships use Schedule B-1 (Form 1065) to provide information applicable to certain entities, individuals, and estates that own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership.

Schedule B-1 (Form 1065)PDF

Some filers of Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships, use Schedule C (Form 1065) to provide answers to additional questions.

Schedule C (Form 1065)PDF 

Instructions for Schedule C (Form 1065)

Use this schedule to report:

  • The overall capital gains and losses from transactions reported on Form 8949, Sales and Other Dispositions of Capital Assets.
  • Certain transactions the partnership doesn't have to report on Form 8949.
  • Capital gains from installment sales from Form 6252, Installment Sale Income.
  • Capital gains and losses from like-kind exchanges from Form 8824, Like-Kind Exchanges (and section 1043 conflict-of-interest sales).
  • Partnership's share of net capital gains and losses, including specially allocated capital gains and losses, from partnerships, estates, and trusts.
  • Capital gain distributions.

Schedule D (Form 1065)PDF

Instructions for Schedule D (Form 1065)PDF

Schedules K-2 & K-3 are new for tax year 2021. They are extensions of Schedule K and are used to report items of international tax relevance from the operation of a partnership.

Schedule K-2PDF 

Schedule K-3PDF 

Instructions for Schedules K-2 & K-3 PDF 

Partnerships file Schedule M-3 (Form 1065) to:

  • Answer questions about their financial statements and reconcile financial statement net income (loss) for the consolidated financial statement group to income (loss) per the income statement for the partnership.
  • Reconcile financial statement net income (loss) for the partnership to line 1 of the Analysis of Net Income (Loss) found on Form 1065 and Form 1065-B.

Schedule M-3 (Form 1065)PDF 

Instructions for Schedule M-3 (Form 1065)


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