Updated September 29, 2026. Quick answer: Six Box 14 codes on a Schedule K-1 (Form 1041) feed Form 3468, the investment credit: C rehabilitation expenditures, D energy property basis, J coal and gasification property, K advanced energy project property, L advanced manufacturing property and M the clean electricity investment credit. Each goes to its own Part.
The six codes and the Part of Form 3468
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 form’s page 2 names each code; the instructions say which Part of Form 3468 it feeds:
| Code | Form label | Report on (form’s code list) |
|---|---|---|
| C | Qualified rehabilitation expenditures | See the beneficiary’s instructions |
| D | Basis of energy property | See the beneficiary’s instructions |
| J | Qualifying advanced coal project property and qualifying gasification project property | See the beneficiary’s instructions |
| K | Qualifying advanced energy project property | See the beneficiary’s instructions |
| L | Advanced manufacturing investment property | See the beneficiary’s instructions |
| M | Clean electricity investment credit | See the beneficiary’s instructions |
| Code | Form label | IRS instruction says |
|---|---|---|
| C | Qualified rehabilitation expenditures | “complete Part VII of Form 3468, Investment Credit” |
| D | Basis of energy property | “you will need to complete Form 3468, Part VI.” |
| J | Qualifying advanced coal project property and qualifying gasification project property | “you will need to complete Form 3468, Part II, Sections A and B.” |
| K | Qualifying advanced energy project property | “you will need to complete Form 3468, Part III.” |
| L | Advanced manufacturing investment property | “you will need to complete Form 3468, Part IV” |
| M | Clean electricity investment credit | “you will need to complete Form 3468, Part V” |
What the fiduciary provides
For codes D through M the instructions use the same pattern: “The fiduciary will provide you with a statement with the distributive share of amounts that you will need to complete Form 3468”. For code C: “The fiduciary will provide you with a statement with your share of qualified rehabilitation expenditures and other information you need to” complete Part VII. When there is more than one property: “If there is information for more than one property, the attached statement will separately identify the information for each property.”
Rental real estate
The instructions add a note on code C: “Expenditures related to rental real estate activities are subject to different passive activity limitation rules than other qualified rehabilitation expenditures.” “See the Instructions for Form 8582-CR, Passive Activity Credit Limitations, for details.”
Common mistakes
- Looking for a dollar figure in the box. These codes usually point to an attached statement, with the amounts you need for Form 3468.
- Sending every code to the same Part. Codes C, D, J, K, L and M each go to a different Part of Form 3468.
- Ignoring the passive activity rules for rehabilitation expenditures tied to rental real estate.
Related: Schedule K-1 Box 14 Code I: Section 199A Information, Schedule K-1 Box 14 Code F and Code ZZ: Other Information, 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.