Updated September 29, 2026. Quick answer: Boxes 6, 7 and 8 of a Schedule K-1 (Form 1041) show your share of business, net rental real estate and other rental income, and Box 9 shows directly apportioned depreciation (code A), depletion (code B) and amortization (code C). The fiduciary attaches a schedule for each activity.
Boxes 6 through 8
The instructions read here are the 2025 edition of the IRS Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (Catalog Number 11374Z, dated March 13, 2025), the edition served at the IRS standing PDF address when read on September 29, 2026. They are written for the beneficiary; the fiduciary’s own instructions are in the Instructions for Form 1041. The instruction reads: “The fiduciary will provide you with a separate schedule showing your distributive share of income from each trade or business, net rental real estate, or other rental activity.”
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| 6 | Ordinary business income | Schedule E, line 33, column (d) or (f) |
| 7 | Net rental real estate income | Schedule E, line 33, column (d) or (f) |
| 8 | Other rental income | Schedule E, line 33, column (d) or (f) |
Losses and the passive activity rules
“Any losses reported in boxes 6 through 8 may be subject to the passive loss limitations of section 469, which generally limits deducting passive losses only from passive activity income.” The instruction is candid that part of the framework was not finished: “The rules for applying these limitations to beneficiaries haven’t yet been issued.” That sentence is from the 2025 edition; read the edition for the year on your form. The instructions point to “Pub. 925, Passive Activity and At-Risk Rules” for more.
Box 9, directly apportioned deductions
“The fiduciary must attach a statement showing depreciation, depletion, and amortization directly apportioned to you, if any, for each activity reported in boxes 5 through 8.” The form’s code list for Box 9:
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| A | Depreciation | Form 8582; or Schedule E, line 33, column (c) or (e) |
| B | Depletion | Form 8582; or Schedule E, line 33, column (c) or (e) |
| C | Amortization | Form 8582; or Schedule E, line 33, column (c) or (e) |
Codes, asterisks and attached statements
“the fiduciary will identify each item by entering a code in the column to the left of” the dollar amount space, and “The fiduciary will enter an asterisk (*) after the code, if any, in the column to the left of the dollar amount entry space for each item for which it has attached a statement providing additional information.”
Common mistakes
- Treating a Box 6 to 8 amount as the whole picture. The attached schedule breaks it down by activity.
- Deducting a loss without checking the passive activity limits the instructions flag.
- Ignoring an asterisk after a code. It means the fiduciary attached a statement with more information.
Related: Schedule K-1 (Form 1041) Boxes 1 to 5: Income Boxes, Schedule K-1 (Form 1041) Box 10: Estate Tax Deduction, and what a K-1 from an estate reports.
Every box and code in one place: the Schedule K-1 (Form 1041) boxes table. What a K-1 from an estate reports overall is on the Schedule K-1 for estates page.
Sources
- IRS, Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1041sk1.pdf
- IRS, Schedule K-1 (Form 1041) 2025, Beneficiary’s Share of Income, Deductions, Credits, etc., page 2 code list: https://www.irs.gov/pub/irs-pdf/f1041sk1.pdf
Source: the IRS instructions for the beneficiary who receives Schedule K-1 (Form 1041), and the form’s own code list, read at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the estate’s or trust’s fiduciary or the IRS is the right place to confirm anything consequential.