Discussion:Guaranteed payments
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 21:31, 22 October 2009 Blrgcpa (Talk | contribs) (S corps don't ge) ← Previous diff |
Revision as of 22:36, 22 October 2009 KatieJ (Talk | contribs) (What are the gua) Next diff → |
||
| Line 11: | Line 11: | ||
| {{ForumReplyPost|UserID=Blrgcpa|Date=22 October 2009|Text=S corps don't get 1099s.}} | {{ForumReplyPost|UserID=Blrgcpa|Date=22 October 2009|Text=S corps don't get 1099s.}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=KatieJ|Date=22 October 2009|Text=What are the guaranteed payments for? GPs can be for services or for the use of capital. See [[Reg. 1.707(c)]]. | ||
| + | |||
| + | I don't know of any reason why a GP can't be made to an S corporation for services the S corporation provides to the partnership. The S corporation would pay salaries to its employee(s) (including stockholder/employees) for the services they provided to the partnership via the S corp.}} | ||
Revision as of 22:36, 22 October 2009
Discussion Forum Index --> Tax Questions --> Guaranteed payments
| 22 October 2009 | |
| Can a partnership make guaranteed payments to its S corporation partner? If not, how does the partnership get a deduction for payments to an S coporation partner? | |
| 22 October 2009 | |
| what I find interesting about this question is the implication that the guaranteed payments might ought to be passed through as a separately stated item. Can't say that I know that answer off the top of my head, but the more I think about it, the more I dont think that it does. | |
| 22 October 2009 | |
| I don't know of any reason why you couldn't (without doing some research). Guaranteed payments are for services rendered and subject to SE tax if paid to an individual. If you'd like to bypass the separately stated K-1 line - just book the expense to your category of whatever service it was. | |
| 22 October 2009 | |
| Why not just 1099 the S-Corp for the guarenteed payments? Then, the partnership would expense the payments as Contract Labor. | |
| 22 October 2009 | |
| What are the guaranteed payments for? GPs can be for services or for the use of capital. See Reg. 1.707(c).
I don't know of any reason why a GP can't be made to an S corporation for services the S corporation provides to the partnership. The S corporation would pay salaries to its employee(s) (including stockholder/employees) for the services they provided to the partnership via the S corp. | |
