i'm willing to be wrong  =]  i thought each partner's distributiive share of 199A QBI would not be based on their profit/loss%, but instead, an amount allocable to them adjusted for their own GPmts. My idea was to gross up the Line 1 income, allocate based on P&Loss%, then deduct each partner's own GPmt.  otherwise, it seems inequitable: the higher paid GP partner will be allocated line 1 income, which DOES include the portion of her own GPmt absorbed by the other partners' P&Loss%

i need to see an example of how IRS accounts for the G.Pmts in calculating the 199A deduction, passed thru to each partner  looking now at IRS website

i've been confusing Guarantee Pmts RECEIVED by the partnership with those PAID by the partnership; although it still doesn't seem equitable between the partners to me

The concept of Guaranteed payments is that the partner that reciwvwed GP will get his money whether the business '/ partnership had a profit or loss.

 

So if your client has a loss, only one partner potentaillpy received GP while Partnerhsip Deducts.  The partner receiving the GP would pick up this as self employwmwnr income unless the partner is an SCORP member in an LLC

 

Pertnership deducts the GP on page of form 1065 and accounts rfor it on Sch K-1 so there's a deductions and offset income to pay portion of tax to IRS

huh?