U.S. · Tax forms
Form 1065 line 19a, distributions of cash and marketable securities.
A Schedule K line, not a page 1 line: what it totals and how it ties to Schedule K-1 box 19 codes.
Line 19a of Schedule K (“Distributions of cash and marketable securities”) is the total of cash (including deemed distributions of money under section 752(b)) and marketable securities distributed to partners, found by combining amounts reported with Schedule K-1 box 19 codes A, D and F. Do not confuse it with page 1 line 19, “Employee benefit programs.”
Look up a distribution code
Result
Line 19a and K-1 box 19, 2025 instructions
| Item | Meaning | What the IRS says |
|---|---|---|
| Line 19a | Cash and marketable securities | Enter distributions of cash (including deemed distributions of money under section 752(b)) and marketable securities made to the partners by combining codes A, D and F |
| Code A | Cash and marketable securities to non-service partners | Use code A to report separately distributions of cash and marketable securities to partners not providing services; do not include amounts reported under codes D and F |
| Code D | Deemed distributions of money | A decrease in a partner’s share of partnership liabilities (and the partnership’s assumption of the partner’s individual liabilities) under section 752(b); only the net decrease is treated as a distribution |
| Code F | Cash or securities to service partners | Certain distributions of cash or marketable securities to a partner who performed services, where the partnership treated the transaction as a distribution to a partner |
| Marketable securities value | FMV less a reduction | Report their FMV on the distribution date reduced (but not below zero) by the section 731(c)(3)(B) reduction amount |
| Statement for securities | Required | State separately the partnership’s adjusted basis of those securities immediately before the distribution and their FMV on the distribution date (reduced by the reduction amount) |
| Line 19b | Other property | Distributions of property not on line 19a, from codes B, C and G |
| Guaranteed payments | Not code F or G | Do not use code F or G for guaranteed payments for services under section 707(c); report them on line 4a |
Which line 19 is it?
Form 1065 has two line 19s. On page 1, line 19 is “Employee benefit programs,” a deduction. Line 19a here is on Schedule K, under Other Information, with line 19b just below it. Searches for “Form 1065 line 19a” are about the distributions line.
How the K-1 ties in
The instructions say to report in box 19 of each Schedule K-1 each partner’s distributions with the corresponding code: A for cash and marketable securities to non-service partners, B for section 737 property, C for other property, D for deemed distributions of money, F for certain cash and securities to service partners, and G for certain other property. Code E is reserved for future use.
What it is not
Line 19a is a Schedule K reporting line, not one of the page 1 deductions. It is also not the same as guaranteed payments for services under section 707(c), which the instructions say to report on line 4a rather than with code F or G.
Worked example
Birch Street Partners (made up) distributes $40,000 in cash to a partner who does not provide services (code A) and has a $5,000 net decrease in that partner’s share of liabilities (code D). Line 19a shows $45,000. A distribution of equipment would go on line 19b, not here. Names and figures are made up.
More line pages in this set
Related lines: Form 1065 Line 21, Form 1065 Line 14, Form 1065 Line 9.
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 is Form 1065 line 19a?
It is on Schedule K and reports distributions of cash and marketable securities to the partners, combining K-1 box 19 codes A, D and F.
Is it the same as page 1 line 19?
No. Page 1 line 19 is “Employee benefit programs,” a deduction. Line 19a is a Schedule K line under Other Information.
What is a deemed distribution under section 752(b)?
A decrease in a partner’s share of partnership liabilities, or a decrease in the partner’s individual liabilities through the partnership’s assumption of them, treated as a distribution of money. It is reported under code D; only a net decrease counts.
How are marketable securities valued?
At fair market value on the date of distribution, reduced (but not below zero) by the section 731(c)(3)(B) reduction amount, with a statement showing adjusted basis and FMV.
Where do distributions of other property go?
Line 19b, from codes B, C and G.
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.