jjtrcka221
Level 2
09-13-2022
04:15 PM
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I have a client that received guaranteed payments from a partnership. I know guaranteed payments do not increase the partners' tax basis, but will the deduction of the guaranteed payments as an expense affect the partners' basis?
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jjtrcka221
Level 2
09-14-2022
09:32 PM
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It looks like the M-1 statement takes it out of book income. So, I am going to assume that this will be the income allocated to the partners, not the book income. So, does the guaranteed payment reduce the partners' capital account who received it when determining basis?
Level 15
09-16-2022
08:26 AM
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Here is a good irs source on partnership basis. https://www.irs.gov/pub/irs-utl/partners-outside-basis.pdf