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?

[sjrcpa · Accepted solution]

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

[phoenixmike230]

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]

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]

thank you