Form 1065 Schedule K Lines 12 to 14 (2025)

Updated October 18, 2026. Quick answer: Schedule K lines 12 to 14 pass deductions and self-employment amounts through to the partners. Line 12 is the section 179 deduction from Form 4562, lines 13a to 13e are charitable gifts, investment interest and other deductions, and line 14 is the self-employment block built from a worksheet in the instructions.

Line 12: section 179 deduction

The form caption is “Section 179 deduction (attach Form 4562)”. The instructions say “Complete Part I of Form 4562 to figure the partnership’s section 179 expense deduction.” and “The partnership doesn’t take the deduction itself but instead passes it through to the partners.” On where it goes: “Attach Form 4562 to Form 1065 and show the total section 179 expense deduction on Schedule K, line 12.” On basis, “The partnership must reduce the basis of the asset by the amount of the section 179 expense elected by the partnership”. The form is at Form 4562 and the limits are at Form 4562 lines 1 to 5.

Lines 13a and 13b: charitable contributions

For line 13a: “Enter charitable cash contributions made during the tax year.” The instructions set a written-acknowledgment rule: “No deduction is allowed for any contribution of $250 or more unless the partnership obtains a written acknowledgment from the charitable organization that shows the amount of cash contributed and gives an estimate of the value of any goods or services provided in return for the contribution.” On the paperwork, “Don’t attach the acknowledgment to the partnership return, but keep it with the partnership’s records.” They add “Attach a statement to Form 1065 that separately identifies the partnership’s contributions for each applicable code below.”

For line 13b the instructions say “If the deduction claimed for noncash contributions exceeds $500, complete Form 8283 and attach it to Form 1065.” They also say “Attach a statement to Form 1065 that separately identifies the partnership’s contributions for each of applicable codes C through F.” Form 8283 is covered at Form 8283.

Line 13c: investment interest expense

The form caption is “Investment interest expense”. The instructions say “Property held for investment includes property that produces income from interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business.” and “Investment interest expense doesn’t include interest expense allocable to a passive activity.” They connect it to two later lines: “Investment income and investment expenses other than interest are reported on lines 20a and 20b, respectively.” The next sentence is “This information is needed by partners to determine the investment interest expense limitation (see Form 4952 for details).” See Form 4952.

Lines 13d and 13e: section 59(e) expenditures and other deductions

For line 13d: “On line 13d(1), enter the type of expenditures claimed on line 13d(2).” and “Enter on line 13d(2) the qualified expenditures paid or incurred during the tax year for which an election under section 59(e) may apply.”

For line 13e: “Enter deductions not included on lines 12, 13a, 13b, 13c, 13d(2), and 21.” and “On the line to the left of the entry space for this line, identify the type of deduction.” When there are several, “If there’s more than one type of deduction, attach a statement to Form 1065 that separately identifies the type and amount of each deduction”. The partner copy is explained at Schedule K-1 box 13.

Line 14: self-employment

The form lists “Net earnings (loss) from self-employment” on line 14a, “Gross farming or fishing income” on line 14b and “Gross nonfarm income” on line 14c. For line 14a: “Use the Worksheet for Figuring Net Earnings (Loss) From Self-Employment in these instructions.” and “Enter on line 14a the amount from line 5 of the worksheet.” The worksheet is a table in the instructions and its lines are not repeated here.

On general partners the instructions say “General partners’ net earnings (loss) from self-employment don’t include the following.” The first item is “Dividends on any shares of stock and interest on any bonds, debentures, notes, etc., unless the dividends or interest is received in the course of a trade or business”. On limited partners: “Generally, a limited partner’s share of partnership income (loss) isn’t included in net earnings (loss) from self-employment.” and “Limited partners treat as self-employment earnings only guaranteed payments for services they actually rendered to, or on behalf of, the partnership to the extent that those payments are payment for those services.”

For line 14b: “Enter on line 14b the partnership’s gross farming or fishing income from self-employment.” For line 14c: “Enter on line 14c the partnership’s gross nonfarm income from self-employment.” The partner copy is at Schedule K-1 box 14.

Where the number comes from

Line 12 comes from Part I of Form 4562, line 14a from the worksheet in the instructions, and lines 13a to 13c from the partnership’s own records of gifts and investment interest, backed by the acknowledgments the instructions describe. Lines 14b and 14c come from the partnership’s farming, fishing and nonfarm records. The lines just before this are on the lines 5 to 11 page.

Where it goes next

The deductions here are part of the Schedule K total that the analysis page picks up: “From the result, subtract the sum of Schedule K, lines 12 through 13e, and 21.” See the analysis of net income (loss). Credits and the remaining lines follow on lines 15 to 21.

Edition and line numbers

This page reads the 2025 Form 1065 and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. Form 1065 has no attach-to caption, so check the form’s own title and header instead. The title line reads “U.S. Return of Partnership Income” and the header reads “For calendar year 2025, or tax year beginning”. Check the tax year printed on the form you are filling in and use that year’s line numbers, because a different year’s form can number or word its lines differently.

Common mistakes

• Attaching the charity acknowledgment to the return. The instructions say “Don’t attach the acknowledgment to the partnership return, but keep it with the partnership’s records.”
• Listing several other deductions as one lump on line 13e. The instructions say “If there’s more than one type of deduction, attach a statement to Form 1065 that separately identifies the type and amount of each deduction”
• Treating a limited partner’s whole share as self-employment earnings. The instructions say “Generally, a limited partner’s share of partnership income (loss) isn’t included in net earnings (loss) from self-employment.”

Related: Form 1065, Form 4562, Form 4562 lines 1 to 5, Form 8283, and Schedule K-1 box 14.

Sources

• Instructions for Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/i1065.pdf
• Form 1065, U.S. Return of Partnership Income (2025): https://www.irs.gov/pub/irs-pdf/f1065.pdf

Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.