Form 1065 Schedule B-1: which 50% owners should a partnership list?

November 14, 2026 · 1 min read

Form 1065 Schedule B-1 is generally attached when the partnership answers Yes to Schedule B question 2a or 2b. Those questions test whether an entity or an individual or estate owned directly or indirectly 50% or more of the partnership's profit, loss, or capital at the end of the tax year.

What to check

Use the Form 1065 constructive ownership instructions instead of relying only on the member list. Schedule B-1 has a section for entities and a section for individuals and estates. Keep the ownership calculations and document why any ownership held through another entity was included.

Example

A partnership has an entity member with a 55% profit interest at year end. It reviews the Schedule B question for entity owners, completes the applicable part of Schedule B-1, and stores the ownership evidence with its Form 1065 file.

Before you proceed

Confirm the year-end ownership date
Test profit, loss and capital
Review direct and indirect ownership

Is a partner's Schedule K-1 a substitute for Schedule B-1?

Schedule K-1 and Schedule B-1 serve separate purposes. Check the Schedule B questions and attach B-1 when required.