REG – Partnerships K-1 Schedule

This topic has 3 replies, 3 voices, and was last updated 12 years, 2 months ago by Soproudofmyself.

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February 17, 2012 at 2:51 am #166511

Soproudofmyself
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Guaranteed payments to a partner from a partnership are shown as income to the partner and flow through as ordinary income on line 5 (schedule k-1)????? that’s Becker’s explanation! I’m looking at the K-1 schedule and “ordinary income” is line 1…..am I missing something or is this an error?

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February 17, 2012 at 2:55 am #324406

Anonymous
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Guaranteed Payments are separately stated on Line 4 of Schedule K-1. It's not added to Line 1.

February 17, 2012 at 2:57 am #324407

Anonymous
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Guaranteed pmts are deductible from partnership income as well as taxed to the partner who receives them.

February 17, 2012 at 2:57 am #324408

Soproudofmyself
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so both becker and I messed up lol. I was thinking line 1, but it's clearly stated in line 4. Thanks!
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