A partnership may not show a loss as a result of deducting guaranteed payments made to the partners.

Name: A partnership may not show a loss as a result of deducting guaranteed payments made to the partners.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Guaranteed payments made to partners are deductible expenses for the partnership and will reduce the partnership's taxable income, which may result in a loss. Therefore, a partnership may show a loss after deducting guaranteed payments made to the partners.

A Partnership May Not Show a Loss as a Result