When computing the partnership's ordinary income, a deduction is allowed for

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Quizplus · Accepted Answer

Guaranteed payments to partners are deductible expenses for the partnership, and are considered ordinary income for the receiving partner. Net operating losses and net short-term capital losses can be carried forward and used to offset future income, and contributions to charitable organizations are deductible for individual partners on their personal tax returns, but they are not deductible expenses for the partnership.

When Computing the Partnership's Ordinary Income, a Deduction Is Allowed