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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?

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Level 15

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


ex-AllStar

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Level 15

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


ex-AllStar

View solution in original post

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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.
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Level 12
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.
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thank you
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