As you may already know, this won't flow automatically from the K-1; the information for each partner will be reported on the respective Schedules K-1, and then each individual recipient partner will input their own 1040 Form 4797 based on that K-1 information. The 1040 Schedule 1 will pick it up from the 4797. From the 2025 instructions for Form 1065 K-1 Line 20:
Code L. Dispositions of property with section 179 deductions. This represents gain or loss on the sale, exchange, or other disposition of property for which a section 179 deduction has been passed through to partners. The partnership must provide all the following information related to such dispositions (see the instructions for page 1, line 6, earlier).
• Description of the property.
• Date the property was acquired and placed in service.
• Date of the sale or other disposition of the property.
• The partner’s share of the gross sales price or amount realized.
• The partner’s share of the cost or other basis plus expense of sale (reduced as explained in the instructions for Form 4797, line 21).
• The partner’s share of the depreciation allowed or allowable, determined as described in the instructions for Form 4797, line 22, but excluding the section 179 deduction.
• The partner’s share of the section 179 deduction (if any) passed through for the property and the partnership’s tax year(s) in which the amount was passed through.
(con'td)
Per the above, use box 20 Code L to report this information. See also: distributions of property on K-1 Line 19b.
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