Capitalized Guaranteed Payments
Our LLC pays each partner guaranteed payments. Some of the GPs for services are for business activity and some are for rental activity. Of course, the TurboTax for Business GP entry page provides two boxes for me to separate the GPs by activity type. Some of our GPs for each type of activity are true expenses, while some belong in capital accounts. For the rental activity, this is not a problem as TT does not automatically deduct the GPs. So, I can enter the GPs that are expenses under each property (and more or less ignore capitalized GPs for rental activity).
However, TT automatically includes all business activity GPs as a deduction on Form 1065, pg. 1, line 10. How can I deduct only the business GPs that should be deducted (not including capitalized GPs) but include all business activity GPs (including capitalized GPs) on Schedule K?
