U.S. · Tax forms
Form 1065 line 21, other deductions.
The catch-all deduction line, the statement it needs, and what the IRS says to keep off it.
Line 21 (“Other deductions (attach statement)”) is the total of allowable trade or business deductions that have no line of their own on page 1 of Form 1065. You attach a statement listing each deduction by type and amount, and the total feeds line 22.
Look up a line 21 item
Result
Line 21 items from the 2025 instructions
| Item | Meaning | What the IRS says |
|---|---|---|
| Amortization | Other deduction (line 21) | Listed as an example. Complete and attach Form 4562 if the partnership is claiming amortization of costs that began during the tax year |
| Insurance premiums | Other deduction (line 21) | Listed as an example of other deductions |
| Legal and professional fees | Other deduction (line 21) | Listed as an example of other deductions |
| Supplies used and consumed | Other deduction (line 21) | Listed as an example: supplies used and consumed in the business |
| Utilities | Other deduction (line 21) | Listed as an example of other deductions |
| Business startup and organizational costs | Other deduction (line 21), with limits | Certain costs are listed as an example; the instructions send you to Limitations on Deductions for details |
| Net negative section 481(a) adjustment | Other deduction (line 21) | Any net negative section 481(a) adjustment is listed as an example |
| Items reported on Schedules K and K-1 | Not on line 21 | Items that must be reported separately on Schedules K and K-1 are not deducted on line 21 |
| Fines or similar penalties | Generally not deductible | No deduction for amounts paid to a government for violating a law, except listed exceptions such as restitution and amounts paid to come into compliance |
| Lobbying expenses | Generally not deductible | Generally not deductible, with a section 162(e)(4)(B) exception when certain in-house lobbying expenditures do not exceed $2,000 |
| Net operating losses | Not a partnership deduction | Only individuals and corporations may claim a net operating loss deduction |
Line 21 is a total backed by a statement
The form asks for the total allowable trade or business deductions that are not deductible elsewhere on page 1, and the instructions say to attach a statement listing by type and amount each deduction included. Line 22 then adds the amounts in the far right column for lines 9 through 21, and line 23 subtracts that total from line 8 to give ordinary business income (loss).
Keep investment and tax-exempt items off it
Line 21 is for trade or business deductions. The instructions say not to deduct here items that must be reported separately on Schedules K and K-1, and they send expenses allocable to tax-exempt income to Schedule K, line 18c. Net operating losses are not claimed by the partnership at all.
Travel, meals, and dues
The instructions allow ordinary and necessary travel and non-entertainment meal expenses subject to limits. Generally the partnership can deduct only 50% of the amount otherwise allowable for non-entertainment meals, entertainment-related meals are generally disallowed, and dues in a club organized for business, pleasure, recreation or other social purpose are not deductible. Civic, professional and trade organizations are treated differently, so read the Special Rules section.
Worked example
Harbor Design Partners (a made-up partnership) has no separate line for these costs: insurance $4,200, legal and professional fees $3,500, utilities $2,900 and supplies used and consumed $1,400. The attached statement lists the four items and line 21 shows $12,000. If it also paid a $600 government fine, that amount is not added, because the instructions generally deny a deduction for fines. Names and figures are made up.
More line pages in this set
Related lines: Form 1065 Line 14, 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 21?
The total allowable trade or business deductions that are not deductible elsewhere on page 1 of Form 1065, with a statement attached listing each deduction by type and amount. Examples in the instructions include amortization, insurance premiums, legal and professional fees, supplies used and consumed, utilities and certain startup and organizational costs.
Do I have to attach a statement?
Yes. The form says “attach statement” and the instructions say to attach a statement listing by type and amount each deduction included on this line.
Where do utilities and insurance go?
The instructions list both as examples of other deductions on line 21, unless they are deductible on a more specific line.
Can the partnership deduct fines and penalties?
Generally no. The instructions deny a deduction for fines or similar penalties paid to a government, with exceptions for restitution, amounts paid to come into compliance, and certain other amounts that are specifically identified in the order or agreement.
How much of meals can a partnership deduct?
Generally 50% of the amount otherwise allowable for non-entertainment meal expenses, and the meals must not be lavish or extravagant. Entertainment-related meals are generally disallowed.
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.