Schedule K-1 (Form 1065), box 10
Box 10: Net section 1231 gain (loss)
Your share of gain or loss on business property held more than a year, reported on Form 4797.
What box 10 reports
Your share of the net gain or loss from selling or exchanging business property (real estate used in a business, depreciable equipment) that the partnership held more than one year.
Where it goes on your return
Form 4797
The common case
In the common case reported on Form 4797, line 2. Passive losses follow the Form 8582 instructions first. Form 4797 can send a net gain on to Schedule D.
When it depends on you
Prior-year section 1231 losses can recharacterize a gain as ordinary income. See the Instructions for Form 4797 and the Partner's Instructions.
A real example line
Below, a line written the way the document text arrives, run through the same reader as your upload. The reader matches the box number and the IRS label, then reads the amount, so it still finds the line when the scan is noisy.
| Line as the engine reads it | Box | Recorded value | Status |
|---|---|---|---|
10 Net section 1231 gain (loss) 2,300 | 10 | 2,300 | Read |
Check before you enter it
- Real estate funds often report box 10 in the year they sell a property. The partnership's statement may name the property.
In the K1 FastTax output
CSV column: box_10. In the checklist a line looks like Schedule K-1 (1065) screen, box 10. All CSV columns.
Official source
The IRS text for every box is in the Partner’s Instructions for Schedule K-1 (Form 1065). Use the edition for the tax year printed on your K-1, because box wording and code lists change.
Plain answers
Questions about box 10
Where does box 10 of a Form 1065 K-1 go on my return?
In the common case box 10 is reported on Form 4797, line 2. A passive loss follows the Form 8582 instructions first, and Form 4797 can send a net gain on to Schedule D. See the Partner's Instructions for Schedule K-1 (Form 1065) for the year on your K-1.
What is section 1231 property?
Real estate used in a business, or depreciable business equipment, that the partnership held more than one year. Box 10 is your share of the net gain or loss from selling or exchanging it.
Why is there an amount in box 10 when I sold nothing?
The partnership sold or exchanged business property. Real estate funds often report box 10 in the year they sell a property, and the partnership's statement may name the property.
Can a gain in box 10 be taxed as ordinary income?
It can be. Section 1231 losses from earlier years can recharacterize a gain as ordinary income. See the Instructions for Form 4797 and the Partner's Instructions for Schedule K-1 (Form 1065).
What if box 10 is a loss?
A number in parentheses is a net loss. How it is treated depends on your other section 1231 transactions and on the passive activity rules. See the Instructions for Form 4797 and the Partner's Instructions.
Does box 10 affect self-employment tax?
Gains and losses on business property are generally not counted as self-employment earnings. The partnership reports those earnings in box 14, code A, so check there and see the Instructions for Schedule SE if you are unsure.
Box 10 shows a code or STMT instead of a number. What do I enter?
Box 10 does not normally have codes. STMT or an asterisk means the amount is on a statement attached to the K-1, so read the statement for the figure. K1 FastTax does not guess: it leaves that CSV cell empty, names the box in needs_review and adds the line to the review list. A code letter printed next to an amount in a box that has no codes is held for review the same way, so check it against the paper K-1 and the Partner's Instructions for Schedule K-1 (Form 1065).
Which CSV column holds box 10?
Box 10 is in the box_10 column as a plain number, with a leading minus for a loss. A blank box 10 is an empty cell, not a zero.
Is box 10 the same on a Form 1120-S or Form 1041 K-1?
Net section 1231 gain (loss) is box 9 on a Form 1120-S K-1. A Form 1041 K-1 has no separate section 1231 box.
Related boxes
Read box 10 from your own K-1
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