Updated October 16, 2026. Quick answer: Box 11 of Schedule K-1 (Form 1065) holds a partner’s other income, gain or loss that has no box of its own, and each lettered code goes to a different place on the return. The 2025 instructions send casualty gains to Form 4684, section 1256 contracts to Form 6781, cancellation of debt to Schedule 1 line 8c and capital gain items to Schedule D. Read the code letter first.
What box 11 reports
On the form, line 11 of Part III is labelled “Other income (loss)”. It is a catch-all: each item is identified by a code letter, and the instructions treat each code on its own. This page covers the partner’s side of a K-1 you received; it does not cover how the partnership files its own return. Every other box is set out on the Schedule K-1 (Form 1065) boxes overview.
Code A is the only box 11 code the instructions call portfolio income. “Portfolio income or loss (shown in boxes 5 through 9b and in box 11, code A) isn’t subject to the passive activity limitations.”
Passive loss items follow the usual route. “Report loss items that are passive activity amounts to you following the Instructions for Form 8582.” “However, if the box in item D of Schedule K-1 is checked, report the loss following the rules for PTPs under Publicly traded partnerships, earlier.”
Every box 11 code and where it goes
The table follows the instructions code by code. Where a code only says the partnership will provide a statement, the statement is the source for the reporting figures.
| Code | What it is, as printed | Where it goes |
|---|---|---|
| A | “The partnership will report portfolio income other than interest, ordinary dividend, royalty, and capital gain (loss) income, and attach a statement to tell you what kind of portfolio income is reported.” | Per the attached statement; REMIC items go to Schedule E (Form 1040), line 38 |
| B | “This is your net gain (loss) from involuntary conversions due to casualty or theft.” | “columns (b)(i), (b)(ii), and (c) of Form 4684, Casualties and Thefts, Part II, line 34” |
| C | “The partnership will report any net gain or loss from section 1256 contracts.” | “Report this amount on Form 6781, Gains and Losses From Section 1256 Contracts and Straddles.” |
| D | “The partnership will give you a statement that shows the information needed to recapture certain mining exploration costs (section 617).” | The statement; the instructions point to a prior-year Publication 535 |
| E | “Generally, this cancellation of debt (COD) amount is included in your gross income” | “Schedule 1 (Form 1040), line 8c” |
| F | “The partnership will use this code to report the net positive income adjustment resulting from all section 743(b) basis adjustments.” | “The partnership will provide your section 743(b) adjustment net of cost recovery at year end by asset grouping in box 20, code U.” |
| G, H | “Codes G and H. Reserved for future use.” | No entry |
| I | “Gain (loss) from disposition of oil, gas, geothermal, or other mineral properties (section 59(e))” | “Report a loss in Form 4797, Part I. Report a gain in Form 4797, Part III, in accordance with the instructions for Form 4797, line 28.” |
| J | “A tax benefit item is an amount you deducted in a prior tax year that reduced your income tax.” | “Report this amount on Schedule 1 (Form 1040), line 8z, to the extent it reduced your tax in the prior tax year.” |
| K | “Gambling gains and losses.” | Depends on whether the partnership was in the business of gambling; see below |
| L | “from a distribution under section 751(b)” | “Report this amount on Form 4797, Part II, line 10.” |
| M | “Gain eligible for section 1045 rollover” | “See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for details on how to report the gain and the amount of the allowable postponed gain.” |
| N | “The partnership should give you (a) the name of the corporation that issued the QSB stock” | “You must purchase other QSB stock” within the stated window; see below |
| O | “Sale or exchange of QSB stock with section 1202 exclusion.” | “See the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949 for details on how to report the gain and the amount of the allowable exclusion.” |
| P | “Gain or loss on disposition of farm recapture property and other items to which section 1252 applies.” | “see the instructions for Form 4797, Part III, line 27” |
| Q | “Gain or loss on Fannie Mae or Freddie Mac qualified preferred stock.” | “If the partner isn’t a financial institution, report the gain or loss on Schedule D (Form 1040), line 5 or 12” |
| R | “Specially allocated ordinary gain (loss).” | “Report this amount on Form 4797, Part II, line 10.” |
| S | “Non-portfolio capital gain (loss).” | “Report total net short-term gain (loss) on Schedule D (Form 1040), line 5. Report the total net long-term gain (loss) on Schedule D (Form 1040), line 12.” |
| T to X | “Codes T through X. Reserved for future use.” | No entry |
| ZZ | “Any other information you may need to file your tax return.” | As the K-1 statement directs |
Codes A and B: portfolio income and casualty gains
For code A, the partnership attaches a statement. If the partnership held a REMIC interest: “If the partnership held a residual interest in a real estate mortgage investment conduit (REMIC), it’ll report on the statement your share of REMIC taxable income (net loss) that you report in column (d) of Schedule E (Form 1040), line 38.”
For code B, a casualty or theft gain or loss, “If there was a gain (loss) from a casualty or theft to property not used in a trade or business or for income-producing purposes, the partnership will provide you with the information you need to complete Form 4684.” The form itself is explained on the Form 4684 page.
Code E: cancellation of debt
A partnership that has debt cancelled passes the amount to the partners. “Under section 108(b)(5), you may elect to apply any portion of the COD amount excluded from gross income to the reduction of the basis of depreciable property.” “See Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, for more details.”
Code K: gambling gains and losses
The treatment turns on one fact. “If the partnership wasn’t engaged in the trade or business of gambling, (a) report gambling winnings on Schedule 1 (Form 1040), line 8b; and (b) deduct gambling losses to the extent of winnings on Schedule A (Form 1040), Itemized Deductions, line 16.”
The other case: “If the partnership was engaged in the trade or business of gambling, (a) report gambling winnings in column (k) of Schedule E (Form 1040), line 28; and (b) deduct gambling losses (to the extent of winnings) in column (i) of Schedule E (Form 1040), line 28.” Schedule E is explained on the Schedule E page.
Codes M, N and O: small business stock
Code M reports gain eligible for the section 1045 rollover where the partnership bought the replacement stock. “Corporate partners aren’t eligible for the section 1045 rollover.” “Your share of the gain eligible for the section 1045 rollover can’t exceed the amount that would have been allocated to you based on your interest in the partnership at the time the QSB stock was acquired.”
A partner can walk away from the partnership’s choice: “You can opt out of the partnership’s section 1045 election and either (a) recognize the gain; or (b) elect to purchase different replacement QSB stock”. “You must also notify the partnership, in writing, if you opt out of the partnership’s section 1045 election.”
Code O covers the section 1202 exclusion. “Corporate partners aren’t eligible for the section 1202 exclusion.” “You must have held an interest in the partnership when the partnership acquired the QSB stock and at all times thereafter until the partnership disposed of the QSB stock.”
Gain from codes M, N and O is reported through Form 8949 and Schedule D, following the instructions quoted in the table.
Codes I, L, R and S: dispositions and capital gain
Code S is the capital gain code. “An example is gain or loss from the disposition of nondepreciable personal property used in a trade or business activity of the partnership.”
Code I has a calculation. “You must figure your gain or loss from the disposition by increasing your share of the adjusted basis by the intangible drilling costs, development costs, or mine exploration costs for the property that you capitalized”. The result goes to Form 4797 as the table shows.
The limits that apply before box 11 loss reaches the return
The instructions list four limits and put them in a fixed order: “These limitations and the order in which you must apply them are as follows: the basis limitations, the at-risk limitations, the passive activity limitations, and the excess business loss limitations.” The amounts printed in Part III are before any of them. “The amounts shown in boxes 1 through 21 reflect your share of income, loss, deductions, credits, and other items from partnership business or rental activities without reference to limitations on losses or adjustments that may be required of you”.
Basis is the partner’s own job to track. “Any losses and deductions not allowed can be carried forward.” “It’s the partner’s responsibility to track and maintain the information necessary to figure their adjusted basis in the partnership (also known as outside basis).”
For the at-risk step, “you’ll have to complete Form 6198, At-Risk Limitations, to figure your allowable loss for the activity.” Form 6198 is covered on the Form 6198 page.
Some items carry their own limit first. “Other limitations may apply to specific deductions (for example, the section 179 expense deduction). Generally, specific limitations apply before the at-risk and passive loss limitations.”
Which revision applies
The edition read for this page is the 2025 Partner’s Instructions for Schedule K-1 (Form 1065) and the 2025 Schedule K-1 (Form 1065) itself, which are the revisions irs.gov served when they were read on 2026-10-16. Check the revision printed on the Schedule K-1 you received and the matching instructions, because a later edition can change the box layout, the column letters and the reporting lines.
Common mistakes
- Posting every box 11 amount to one line. The instructions send code B to Form 4684, code C to Form 6781, code E to Schedule 1 line 8c and code S to Schedule D, so the code letter decides the form.
- Treating gambling the same in every partnership. The instructions split code K on whether the partnership was engaged in the trade or business of gambling, with different lines for winnings and losses in each case.
- Ignoring the attached statement. For codes A, B and D the instructions say the partnership gives a statement with the figures, and the K-1 box alone does not carry them.
Related: Form 4797 sales of business property, Form 4684 casualties and thefts, Schedule D (Form 1040), Form 8949 sales of capital assets, and Schedule K-1 (Form 1065) boxes explained.
Sources
- 2025 Partner’s Instructions for Schedule K-1 (Form 1065): https://www.irs.gov/pub/irs-pdf/i1065sk1.pdf
- Schedule K-1 (Form 1065) (2025), Partner’s Share of Income, Deductions, Credits, etc.: https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
Read from the IRS documents linked above on October 16, 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.