U.S. · Tax forms
Form 1065 line 14, taxes and licenses.
What belongs on line 14 and which taxes go to Schedule K, Form 8825 or are capitalized instead.
Line 14 is for taxes and licenses paid or incurred in the partnership’s trade or business activities that are not reflected elsewhere on the return. Many taxes are routed to other places, so check the list of exclusions first.
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Line 14 inclusions and exclusions, 2025 instructions
| Tax | Meaning | What the IRS says |
|---|---|---|
| Business taxes and licenses | Line 14 | Taxes and licenses paid or incurred in trade or business activities if not reflected elsewhere on the return |
| Federal import duties, excise and stamp taxes | Line 14 if in business | Deductible only if paid or incurred in carrying on the partnership’s trade or business |
| Foreign taxes (not creditable) | Line 14 | Only taxes not creditable but deductible under sections 901 and 903; see Schedule K-2, Part II, Section 2, line 45, column (g) |
| Taxes not imposed on the partnership | Not line 14 | Listed under taxes not to deduct on line 14 |
| Federal income taxes | Not line 14 | Or taxes reported elsewhere on the return |
| Creditable foreign taxes | Schedule K line 21 | Report on Schedule K, line 21 and in box 21 of Schedule K-1 |
| Taxes on rental activity | Form 8825 or Schedule K line 3b | Rental real estate on Form 8825; other rental activity on Schedule K, line 3b |
| Taxes on investment property | Schedule K line 13e | Taxes for production or collection of income or management of property held to produce income: line 13e, box 13 code ZZ |
| Taxes on acquiring or disposing of property | Capitalized | Part of the cost of acquired property, or a reduction in the amount realized on a disposition |
| Local benefit assessments | Not line 14 | Taxes assessed against local benefits that increase the property’s value, such as paving |
Where line 14 fits
Line 14 sits in the deduction block after repairs, bad debts and rent. Line 22 adds lines 9 through 21 and line 23 subtracts it from total income on line 8.
Apportioning real property taxes
For real property taxes split between seller and purchaser the instructions refer to section 164(d). Capitalization of allocable costs is covered by section 263A(a).
Worked example
Lakeside Partners (made up) paid $3,000 in state business licenses, $1,200 in federal excise tax on its business activities and $5,000 in property tax on a rental building. The first two ($4,200) go on line 14. The rental property tax goes on Form 8825. Line 14 shows $4,200. Names and figures are made up.
More line pages in this set
Related lines: Form 1065 Line 21, Form 1065 Line 9, Form 1065 Line 20.
Sources
- Instructions for Form 1065 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 1065 (2025), U.S. Return of Partnership Income: the printed line wording and arithmetic on the form (Form 1065 (2025), created 11/25/25). Read November 2, 2026.
Tax year 2025 forms and instructions: Form 1065 (2025) and its 2025 instructions. Line numbers and labels were read from the IRS PDF and instructions on the date read and can change between tax years, so check them against the form for your year. Names in worked examples are made up.
Frequently asked questions
What goes on Form 1065 line 14?
Taxes and licenses paid or incurred in the partnership’s trade or business that are not reflected elsewhere on the return.
Are federal income taxes deductible on line 14?
No. Federal income taxes, taxes not imposed on the partnership and taxes reported elsewhere on the return are not deducted on line 14.
Where do rental property taxes go?
Taxes allocable to rental real estate go on Form 8825. Taxes for another rental activity go on Schedule K, line 3b.
What about foreign taxes?
Only non-creditable but deductible foreign taxes go on line 14. Creditable foreign taxes are reported on Schedule K, line 21 and in box 21 of Schedule K-1.
Are taxes on buying or selling property deductible here?
No. They are part of the cost of the acquired property or a reduction in the amount realized on a disposition.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.