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