Updated October 18, 2026. Quick answer: Lines 4 to 7 collect trade or business income that is not gross receipts: income from other partnerships, estates and trusts, net farm profit, the net gain or loss from Form 4797, and other income. Line 8 combines lines 3 through 7. The amounts come from Schedules K-1 received, Schedule F, Form 4797 and an attached statement.
Line 4: income from other partnerships, estates and trusts
The form’s caption is “Ordinary income (loss) from other partnerships, estates, and trusts (attach statement)”. The instructions say “Enter the ordinary income (loss) shown on Schedule K-1 (Form 1065) or Schedule K-1 (Form 1041), or other ordinary income (loss) from a foreign partnership, estate, or trust.” They add “If the amount entered is from more than one source, identify the amount from each source.” Box 1 of a received Schedule K-1 is explained at Schedule K-1 box 1.
Two limits apply. “Don’t include portfolio income or rental activity income (loss) from other partnerships, estates, or trusts on this line.” And “Ordinary income (loss) from another partnership that is a PTP isn’t reported on this line.”
Line 5: net farm profit or loss
The caption is “Net farm profit (loss) (attach Schedule F (Form 1040))”. The instructions say “Enter the partnership’s net farm profit (loss) from Schedule F (Form 1040).” They also say “Don’t include on this line any farm profit (loss) from other partnerships.” That amount goes on line 4. Another sentence reads “Also report the partnership’s fishing income on this line.”
Line 6: net gain or loss from Form 4797
The caption is “Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797)”. The instructions open with a caution: “Include only ordinary gains or losses from the sale, exchange, or involuntary conversion of assets used in a trade or business activity.” For the form itself, see Form 4797. Section 1231 gains and losses are discussed at Form 4797 lines 2 to 6.
Line 7: other income or loss
The caption is “Other income (loss) (attach statement)”. The instructions say “Enter any other trade or business income (loss) not included on lines 1a through 6.” They add “List the type and amount of income on an attached statement.” The instructions then list examples, including “Interest income derived in the ordinary course of the partnership’s trade or business, such as interest charged on receivable balances.” and “Taxable income from insurance proceeds.” Two exclusions end the paragraph: “Don’t report portfolio or rental activity income (loss) on this line.” Other list entries (for example, items tied to specific credit forms) are in the instructions themselves; this page covers only the ones quoted here.
Line 8: total income
The caption is “Total income (loss). Combine lines 3 through 7”. The instructions have no separate paragraph for line 8 (checked in both extractions), so the caption is the rule. As a computed illustration, not an IRS example, a line 3 gross profit of $150,000 plus a line 7 other income of $5,000, with nothing on lines 4 to 6, combines to $155,000.
Where the number comes from
Line 4 comes from the Schedules K-1 the partnership received. Line 5 comes from the attached Schedule F. Line 6 comes from the attached Form 4797. Line 7 comes from the partnership’s records and the statement attached to the return. Line 3 comes from the lines 1a to 3 page.
Where it goes next
Line 8 is the figure from which line 22 is later taken away. The caption for line 23 is “Ordinary business income (loss). Subtract line 22 from line 8”. The deduction lines start on the lines 9 and 10 page. Other income that must be stated separately is reported on Schedule K, beginning with Schedule K lines 1 to 4.
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
- Reporting a rental or portfolio share from another partnership on line 4. The instructions say “Don’t include portfolio income or rental activity income (loss) from other partnerships, estates, or trusts on this line.”
- Putting a farm share received from another partnership on line 5. The instructions say “Don’t include on this line any farm profit (loss) from other partnerships.”
- Entering other income with no support. The instructions say “List the type and amount of income on an attached statement.”
Related: Form 1065, Schedule K-1 box 1, Form 4797, and Form 4797 lines 2 to 6.
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.