Guaranteed payments are deductible by the partnership and are taxable to the partner receiving the payments.

Name: Guaranteed payments are deductible by the partnership and are taxable to the partner receiving the payments.
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Question

Quizplus · Accepted Answer

Guaranteed payments are considered a form of compensation to a partner for services rendered to the partnership. As such, they are deductible by the partnership and are taxable to the partner receiving the payments as ordinary income.

Guaranteed Payments Are Deductible by the Partnership and Are Taxable