Pacun Posted April 18, 2021 Report Share Posted April 18, 2021 Two partners 80% and 20%. I am preparing 1040 for the 80% partner and his K1 shows guaranteed payments for a total of $140K. The partnership ordinary income is $100K of which my client got $80K on his K1. My client is the one who does all the work for the partnership (active participation). I can deduct 199A from the $80K but not from the $140K, correct? Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted April 18, 2021 Report Share Posted April 18, 2021 My understanding is that Guaranteed payments do not qualify for the 199A deduction. 2 Quote Link to comment Share on other sites More sharing options...
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