jasdlm Posted October 13, 2022 Report Share Posted October 13, 2022 Client insists her GP income should be flagged on the partnership return I prepared as QBI eligible. Says her account is saying she's losing money over this. I even found the section on the IRS website that says 'No GPs', but I'm feeling like I'm missing something. Just need a little hand-holding/reassurance or a swift kick in the back side. Thanks. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 13, 2022 Report Share Posted October 13, 2022 You are correct. No GPs. 1 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 13, 2022 Report Share Posted October 13, 2022 The Tax Advisor: "Sec. 199A(c)(4)(B) provides that QBI does not include any guaranteed payments to a partner for services rendered to the partnership's trade or business. Furthermore, the guaranteed payment deduction reduces the amount of income otherwise eligible for the QBI deduction, and the guaranteed payments are not treated as W-2 wages for the partnership's calculation of wage-based limits under Sec. 199A. Taking all three of these changes together makes the usefulness of guaranteed payments minimal and potentially harmfuL" 3 Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted October 14, 2022 Report Share Posted October 14, 2022 6 hours ago, cbslee said: usefulness of guaranteed payments minimal and potentially harmful Thus her accountant is correct, she is losing money over this; but it's because of her & her partners boneheaded business decisions, not you telling her the consequences of her actions. 4 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.