Guaranteed Payment Allocated to COGS

[raym2612]

One partner performs the day to day work for the farm and is receiving guaranteed payments for the service. The service should be allocated to COGS. If I have it recorded in COGS and as guaranteed payment the it is double counted. Any way to have the payment be part of COGS and link that to the K-1?

[PhoebeRoberts · Accepted solution]

Enter it in the field called Guaranteed Payments Capitalized, not the Trade or Business section of Guaranteed Payments.

[raym2612]

Thank you!