Schedule K-1 (Form 1065), box 12
Box 12: Section 179 deduction
Your share of the partnership's section 179 expense for equipment and similar property, subject to your own annual limit.
What box 12 reports
Your share of the section 179 expense deduction the partnership elected to pass through to you.
Section 179 is subject to an annual limit that applies to you across all your sources, not only this partnership.
Where it goes on your return
Form 4562, Part I
The common case
Entered on Form 4562, Part I (line 12), together with section 179 costs from your other sources, then applied to Schedule E for nonpassive activities. Passive amounts go through Form 8582.
When it depends on you
Taxable income and investment limits can defer part of the deduction. See the Instructions for Form 4562 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 |
|---|---|---|---|
12 Section 179 deduction 5,000 | 12 | 5,000 | Read |
Check before you enter it
- Box 12 is a deduction. K1 FastTax expects it positive, and flags a negative for a second look.
In the K1 FastTax output
CSV column: box_12. In the checklist a line looks like Schedule K-1 (1065) screen, box 12. 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 12
Where does box 12 of a Form 1065 K-1 go on my return?
In the common case it is entered on Form 4562, Part I, together with section 179 costs from your other sources, and then applied to Schedule E for nonpassive activities. Passive amounts go through Form 8582. See the Partner's Instructions for Schedule K-1 (Form 1065) for the year on your K-1.
Why can't I deduct all of my box 12 amount this year?
Section 179 has an annual limit that applies across all your sources, not only this partnership, and taxable income and investment limits can defer part of the deduction. See the Instructions for Form 4562 and the Partner's Instructions.
Is box 12 a deduction or income?
A deduction: your share of the section 179 expense the partnership elected to pass through to you. K1 FastTax expects the number to be positive and flags a negative for a second look.
Does box 12 reduce the income in box 1?
The partnership reports section 179 as a separate item, so it generally is not already subtracted from the income or loss in box 1. Enter it where your software asks for section 179, so that it is combined with your own limit. See the Partner's Instructions if your situation is unusual.
Box 12 shows a code or STMT instead of a number. What do I enter?
Box 12 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 12?
Box 12 is in the box_12 column as a plain number. A blank box 12 is an empty cell, not a zero.
Is box 12 the same on a Form 1120-S or Form 1041 K-1?
The section 179 deduction is box 11 on a Form 1120-S K-1. A Form 1041 K-1 has no section 179 box.
Related boxes
Read box 12 from your own K-1
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