565: Partnership Return of Income (2025)
California · FTB · Used for tax years 2025
California Form 565 is the Partnership Return of Income for 2025. It reports income, deductions, ordinary business income or loss, taxes, payments, and any amount due or refund.
What you'll need
Have the partnership’s name, address, FEIN, California Secretary of State file number, accounting method, and financial information ready.
The form calls for these attachments, as applicable:
- A California Schedule K-1 (565) for each partner.
- Schedules explaining ordinary income or loss from other partnerships and fiduciaries, other income or loss, and other deductions.
- Federal Schedule F (Form 1040) for farm profit or loss.
- Form FTB 3885P for depreciation and amortization.
- Federal Form 8825 for rental real estate income or loss.
- Schedule D (565) for short-term and long-term capital gains or losses.
- Federal Form 8886 for each reportable or listed transaction reported on the return.
For withholding reported on line 28, the form references Form 592-B and/or Form 593.
How to file
The general partner must sign and date the return. The form also has a paid preparer section and a question asking whether the FTB may discuss the return with that preparer.
If enclosing a payment, make the check or money order payable to the Franchise Tax Board. Enclose it, but do not staple it to the return.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Mixing income types: The form cautions that lines 1a through 22 should include only trade or business income and expenses.
- Leaving the business activity code blank: Question K specifically says not to leave it blank.
- Treating use tax as a total: Line 32 is for use tax, not a total line.
- Deducting oil and gas depletion on line 18: The form says not to deduct it there.
- Skipping the Question P instructions: The form says to review those instructions before completing Schedules L, M-1, and M-2.
- Missing a property-related filing: A yes answer to Question I requires a BOE-100-B statement. The form warns that penalties may apply.
Questions people ask
Does every entity enter the $800 tax on line 24?
No. Line 24 labels the $800 tax as applying to LPs, LLPs, and REMICs only and directs filers to the instructions. Question J also distinguishes LPs required to pay annual tax from entities not required to pay it.
Do I need a California Schedule K-1 for every partner?
Yes. Question L says to attach a California Schedule K-1 (565) for each partner and report the maximum number of partners at any time during the year.
When should I leave the partnership-level tax line blank?
Line 26 says to leave it blank if the IRS did not conclude a centralized audit for this year. If the IRS did conclude one, the form directs you to the instructions.
What if the partnership owns an interest in another entity?
If it is a partner in another partnership or multiple-member LLC, Question Q says to complete Schedule EO, Part I. If it owns an interest in a business entity disregarded for tax purposes, Question BB says to complete Schedule EO, Part II.