If a partnership that has no agreement & literally pays out to 5 partners over 1 million dollars, , how much ,if any, would be considered guaranteed payments?

phoenixmike230 · ‎12-07-2019

sjrcpa · ‎12-07-2019

The amount that the partners say is Guaranteed Payments. It could be zero.

The more I know the more I don’t know.

phoenixmike230 · ‎12-07-2019

I am concerned that a Gen Partner with 400K of ord income & no guar payments & than all 400K qualifies for QBI- is a bad look.

TaxGuyBill · ‎12-07-2019

As far as I know, there is no requirement (yet) for "reasonable compensation" via a Guaranteed Payment. I suspect with QBI that will change, but as of now, I'm not aware of anything that requires it.

phoenixmike230 · ‎12-07-2019

thank you