dascpa
Level 12
01-08-2024
06:06 PM
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Guaranteed payments can be used that way but
"...guaranteed payments are payments made by the partnership to a partner guaranteed to be paid regardless of whether the partnership generates profits or incurs losses. A partner typically receives guaranteed payments as compensation for services rendered to the partnership."
Most doctor's offices will not "guarantee" based on gross billing, but net profit after expense allocation.
Many will say something like $100,000 guaranteed and the balance based on xyz allocation. There we have two different items on the K-1.