11 — Long-Term Gain or Loss From Partnerships, S Corps, Estates, and Trusts Updated for tax year 2025

What this line means

Your share of long-term capital gains or losses from partnerships, S corporations, estates, or trusts. These amounts appear on the Schedule K-1 you receive from the entity. The entity determined the holding period — these are gains from assets the entity held for more than one year. Your share is taxed at your individual long-term capital gains rate.

Does this apply to you?

• You are a partner in a partnership that sold assets held more than one year
• You are a shareholder in an S corporation that reported long-term capital gains on your K-1
• You are a beneficiary of an estate or trust that distributed long-term capital gains to you
• You invested in a real estate syndication, venture capital fund, or private equity fund structured as a partnership

Easy to overlook

K-1 Box 9a is not the only place long-term gains appear Long-term capital gains from pass-through entities can appear in K-1 Box 9a (net long-term capital gain), Box 9b (collectibles gain at 28%), and Box 9c (unrecaptured Section 1250 gain at 25%). Each has different tax treatment. Filers who report only Box 9a miss the separately stated items. ¹ [SOURCE: IRS Schedule D instructions — Line 11]

Basis limitations on pass-through losses If the K-1 shows a long-term capital loss, you can only deduct it to the extent of your basis in the entity. If your basis has been reduced by prior-year losses or distributions, the current-year loss is suspended until you restore basis. Your broker or tax software does not track this for you. ² [SOURCE: General filing pattern — missed K-1 long-term capital gains]

Watch out for this

Filing before receiving the K-1 and omitting the long-term capital gains. Partnerships and S corps routinely issue K-1s after April 15, especially if they file on extension. If you know you are a partner or shareholder, file your personal return on extension rather than filing without the K-1 income.

Related lines on your return

• Line 4 — Schedule D — Short-term gain or loss from partnerships, S corps, estates, and trusts
• Line 15 — Schedule D — Net long-term capital gain or loss
• Line 18 — Schedule D — Unrecaptured Section 1250 gain (may include amounts from K-1 Box 9c)