My partnership client has guarantee payments of widely disparate amounts between partners, depending upon the effort/services rendered each year. I don't see LCT taking each individual partner's GPmts into account for their 199A QBI income shown on K-1 Box20Z.
i do see a question previously ask, and answered by George4Tacks, but i don't understand how that applies to my situation. do i need to manually calc and specially allocate the QBI to each partner in Lacerte?
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i need to see an example of how IRS accounts for the G.Pmts in calculating the 199A deduction, passed thru to each partner looking now at IRS website
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