Updated October 18, 2026. Quick answer: Lines 11 to 14 are four trade or business deductions: repairs and maintenance, bad debts, rent, and taxes and licenses. Each takes only the amount tied to the partnership’s trade or business and not claimed elsewhere. The amounts come from the partnership’s ledgers and invoices.
Line 11: repairs and maintenance
The caption is “Repairs and maintenance”. The instructions say “Enter the cost of repairs and maintenance not claimed elsewhere on the return, such as labor and supplies, that aren’t payments for improvements to the partnership’s property.” On improvements they say “Improvements must be capitalized.” They also say “The partnership can deduct repair and maintenance expenses only to the extent they relate to a trade or business activity.”
Line 12: bad debts
The caption is “Bad debts”. The instructions say “Enter the total debts that became worthless in whole or in part during the year, but only to the extent such debts relate to a trade or business activity.” They also say “Report deductible nonbusiness bad debts as a short-term capital loss on Form 8949.” The caution reads “Partnerships can’t take a bad debt deduction unless the amount was previously included in income.” Form 8949 is explained at Form 8949.
Line 13: rent
The caption is Rent. The instructions say “Enter rent paid on business property used in a trade or business activity.” They also say “Don’t deduct rent for a dwelling unit occupied by any partner for personal use.” For a rented or leased vehicle, the instructions say to “enter the total annual rent or lease expense paid or incurred in the trade or business activities of the partnership.” and to “Also complete Form 4562, Part V.” The instructions include a table of vehicle values that can trigger an inclusion amount; this page does not reproduce it, so read the table by name in the line 13 instructions. Form 4562 is covered at Form 4562.
Line 14: taxes and licenses
The caption is “Taxes and licenses”. The instructions say “Enter taxes and licenses paid or incurred in the trade or business activities of the partnership if not reflected elsewhere on the return.” The list of taxes that stay off the line includes “Federal income taxes or taxes reported elsewhere on the return.” and “Taxes allocable to a rental activity.” It also includes “Taxes, including state or local sales taxes, that are paid or incurred in connection with an acquisition or disposition of property”. Another entry reads “Creditable foreign taxes under sections 901 and 903.” Sorting taxes between this line and Schedule K is the same question a sole proprietor faces on Schedule C line 23.
Where the number comes from
All four lines come from the partnership’s own records: repair invoices and labor, the year’s account of worthless trade receivables, lease and rent payments, and tax and license payments. A comparable single-owner layout is on Schedule C lines 20 to 22.
Where it goes next
These lines feed the total deductions on line 22. The form’s caption for the section is “Deductions (see instructions for limitations)”. The instructions open the section with “Report only trade or business activity deductions on lines 9 through 21.” Interest, depreciation and the remaining lines are on the lines 15 to 18 page.
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 the form’s own title line is the check: it reads “U.S. Return of Partnership Income” and the period line reads “For calendar year 2025, or tax year beginning”. Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently.
Common mistakes
- Capitalizable improvements deducted as repairs. The instructions say “Improvements must be capitalized.”
- Deducting rent for a partner’s home. The instructions say “Don’t deduct rent for a dwelling unit occupied by any partner for personal use.”
- Putting rental activity taxes on line 14. The instructions say “Taxes allocable to a rental activity.” stay off the line.
Related: Form 1065, Form 4562, Form 8949, Schedule C line 23, and Schedule C lines 20 to 22.
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.