Charitable Contributions on Form 1065: Schedule K Line 13

A partnership reports charitable contributions on Form 1065 by entering them on Schedule K, Line 13a for cash gifts and Line 13b for noncash gifts, using letter codes that identify the applicable AGI limit. The partnership itself takes no deduction. Each partner’s share flows through on Schedule K-1, Box 13, and the partner claims the deduction on Schedule A of Form 1040, subject to their own adjusted gross income ceiling and basis.

Where Contributions Go on Form 1065

Schedule K is the summary page of Form 1065 where pass-through items are totaled. Cash contributions belong on Line 13a; noncash contributions belong on Line 13b.¹ The partnership must attach a statement identifying totals under each letter code, because different types of contributions carry different AGI ceilings at the partner level.

For cash on Line 13a, the two main codes are:

Code A — cash contributions subject to the 60% AGI limit (most cash gifts to public charities).
Code B — cash contributions subject to the 30% AGI limit (cash given “for the use of” a qualified organization, or to certain non-operating private foundations).

Getting the classification right at the partnership level matters. If a 30%-limit contribution is coded as a 60%-limit one, a partner may claim more than they’re entitled to and face a correction later. This is also why contributions are separately stated under IRC 702(a)(4) rather than buried in ordinary business expense: each partner applies their own AGI ceiling on their own return.²

How the Contribution Reaches Each Partner

After totaling Schedule K, the partnership issues each partner a Schedule K-1 showing their share. Charitable contributions appear in Box 13, labeled “Other Deductions,” carrying the same letter codes used on Schedule K.³ The common codes are:

Code A — cash contributions (60% AGI limit).
Code B — cash contributions (30% AGI limit).
Code C — noncash contributions (50% AGI limit).
Code D — noncash contributions (30% AGI limit).
Code E — noncash contributions (20% AGI limit).

Partners transfer the amounts to Schedule A of Form 1040. Cash contributions (Codes A and B) go on Line 11; noncash contributions go on Line 12.³ If the partnership donated noncash property worth more than $500, it must also give the partner a copy of Form 8283 to attach to the individual return.

You Have to Itemize

The deduction only helps if you itemize on Schedule A. Take the standard deduction and the amount in K-1 Box 13 does nothing for you that year. For 2026, the standard deduction is $16,100 for single filers and $32,200 for married filing jointly.⁴ If your total itemized deductions, including the K-1 charitable share plus mortgage interest, state taxes, and everything else, land below that number, the contribution produces no tax benefit.

The AGI Limits Partners Apply

Each partner’s deduction is capped as a percentage of their AGI, and the percentage tracks the code on the K-1:⁵

60% of AGI for cash contributions to public charities and most operating foundations.
50% of AGI for noncash contributions to public charities and operating foundations.
30% of AGI for cash contributions “for the use of” a qualified organization, and for appreciated capital gain property donated to public charities.
20% of AGI for capital gain property donated to private non-operating foundations.

The 60% ceiling for cash is now permanent.⁶ When a partner’s share exceeds their applicable ceiling, the unused portion carries forward for up to five tax years.⁷ The partnership doesn’t track that carryforward. The partner does, on their own Form 1040 in each successive year.

The Basis Limitation Comes First

Before the AGI ceiling is reached, a partner has to clear an earlier hurdle. Under IRC 704(d), a partner’s share of charitable contributions reduces their outside basis in the partnership, and a partner generally cannot deduct contributions that would push basis below zero.⁸ This bites hardest in leveraged partnerships and where partners have already absorbed large losses.

One exception: when the partnership donates appreciated property, the portion of the deduction representing fair market value above the partnership’s cost basis is not subject to the 704(d) basis limitation.⁸ The built-in gain portion flows through even when basis is low.

The basis reduction itself is measured differently from the deduction. Revenue Ruling 96-11 confirms that a partner’s outside basis is reduced by their share of the partnership’s cost basis in the donated property, not by the fair market value claimed as the deduction.⁹ A partner might claim a $50,000 deduction for appreciated property but reduce basis by only $10,000 if that was the partnership’s cost.

Noncash Contributions and Form 8283

Property donations bring valuation questions and paperwork the partnership can’t skip. Appreciated capital gain property held more than a year is generally deductible at full fair market value. Property that would produce ordinary income if sold, such as inventory or short-term holdings, is limited to the partnership’s cost basis.

If the partnership’s total noncash contributions exceed $500, it must file Form 8283 with Form 1065.¹⁰ Section A covers items valued at $5,000 or less and requires a property description, acquisition date, and how the partnership obtained it.

When any single item or group of similar items exceeds $5,000 in claimed value, the partnership completes Section B and must obtain a qualified appraisal from an independent, credentialed appraiser.⁷ The receiving charity also signs Section B. The $5,000 threshold is measured at the partnership level, not per partner. A donation that produces sub-$5,000 shares for each individual partner still requires the appraisal if the partnership-level value exceeds the threshold.¹⁰

The partnership then gives every affected partner a copy of the completed Form 8283 to attach to their Form 1040. Skipping the appraisal or failing to file Form 8283 above the $5,000 threshold can lead the IRS to deny the entire deduction for all partners.

Written Acknowledgment for Any Gift of $250 or More

Any single contribution of $250 or more, cash or noncash, requires a contemporaneous written acknowledgment from the charity. It must state the cash amount or describe the donated property and confirm whether anything was received in return; if so, the charity estimates the value of what it gave back.¹¹ The partnership must hold the acknowledgment by the filing deadline of Form 1065, including extensions.¹ Getting it later won’t save the deduction if the IRS asks.

Interaction with the Section 199A QBI Deduction

Because charitable contributions are separately stated under Section 170 rather than deducted as an ordinary Section 162 business expense, they don’t reduce the partnership’s qualified business income. The full QBI flows through for purposes of the partner’s 199A calculation, and the charitable deduction separately reduces taxable income on Schedule A. Partners who make significant contributions through the partnership get both benefits without one shrinking the other.

Deadlines and Penalties Tied to Box 13

Calendar-year partnerships file Form 1065 by March 15 of the following year. For tax year 2025 that date falls on a Sunday, pushing the deadline to Monday, March 16, 2026. Filing Form 7004 extends it to September 15, 2026, but only the paperwork is extended; any tax owed by partners is unaffected because the partnership itself owes none.

Late filing carries a per-partner, per-month penalty. IRC 6698 sets a base of $195 per partner per month for up to 12 months, adjusted annually for inflation and running roughly $250 per partner per month for recent years.¹² Errors on the K-1 carry their own exposure. Under IRC 6722, failing to furnish a correct K-1 on time draws $310 per statement, dropping to $60 if corrected within 30 days. Intentional disregard jumps the penalty to $630 per K-1 with no cap. Because Box 13 codes directly control how each partner claims the deduction, a miscoded contribution can produce penalties on both sides of the return.

1
Internal Revenue Service. Instructions for Form 1065 (2025)
2
Office of the Law Revision Counsel. 26 U.S. Code 702 – Income and Credits of Partner
3
Internal Revenue Service. Partner’s Instructions for Schedule K-1 (Form 1065) (2025)
4
Tax Foundation. 2026 Tax Brackets and Federal Income Tax Rates
5
Internal Revenue Service. Publication 526 – Charitable Contributions
6
Internal Revenue Service. Charitable Contribution Deductions
7
Office of the Law Revision Counsel. 26 U.S. Code 170 – Charitable, Etc., Contributions and Gifts
8
Office of the Law Revision Counsel. 26 U.S. Code 704 – Partner’s Distributive Share
9
Internal Revenue Service. Revenue Ruling 96-11
10
Internal Revenue Service. Instructions for Form 8283 – Noncash Charitable Contributions
11
Internal Revenue Service. Charitable Contributions Written Acknowledgments
12
Office of the Law Revision Counsel. 26 USC 6698 – Failure to File Partnership Return