Schedule K-1 (Form 1065), box 7
Box 7: Royalties
Your share of royalty income, such as oil, gas, patent or copyright royalties received by the partnership.
What box 7 reports
Your share of royalties the partnership received, for example on mineral interests, patents or copyrights.
Where it goes on your return
Schedule E, line 4
The common case
Reported on Schedule E (Form 1040), line 4, royalties received.
When it depends on you
Royalties from an active business and the deductions that go with them (box 13, code I) have special rules. See 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 |
|---|---|---|---|
7 Royalties 640 | 7 | 640 | Read |
Check before you enter it
- Royalty deductions, if any, are in box 13 code I, not here.
In the K1 FastTax output
CSV column: box_7. In the checklist a line looks like Schedule K-1 (1065) screen, box 7. 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 7
Where does box 7 of a Form 1065 K-1 go on my return?
In the common case royalties are reported on Schedule E (Form 1040), line 4, royalties received. See the Partner's Instructions for Schedule K-1 (Form 1065) for the year on your K-1.
What counts as a royalty in box 7?
Your share of royalties the partnership received, for example on mineral interests such as oil and gas, patents or copyrights. Interest, dividends and rent are reported in their own boxes.
Where do the deductions for royalty income go?
Royalty deductions, if there are any, are in box 13 under code I, not in box 7. Box 7 is income only.
Are royalties from an active business treated differently?
In some cases, yes. Royalties from an active business and the deductions that go with them have special rules. See the Partner's Instructions for Schedule K-1 (Form 1065) and ask your preparer if the partnership is in that situation.
Does box 7 count as self-employment income?
The partnership reports self-employment earnings in box 14, code A, not in box 7. Whether royalties are included depends on the facts, so check box 14 and the Instructions for Schedule SE.
Box 7 shows a code or STMT instead of a number. What do I enter?
Box 7 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 7?
Box 7 is in the box_7 column as a plain number. A blank box 7 is an empty cell, not a zero.
Is box 7 the same on a Form 1120-S or Form 1041 K-1?
Royalties are box 6 on a Form 1120-S K-1. A Form 1041 K-1 has no separate royalties box; they generally fall under box 5, other portfolio and nonbusiness income. Box numbers differ between forms, so match the label.
Related boxes
Read box 7 from your own K-1
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