I have two questions that are keeping me from filing our taxes as a general partnership. One about Guaranteed payments and another about where to attach 1099.

[dylanbaranyk]

I co-own a relatively successful videography company and we're trying to do our taxes our first year as a partnership and not individual free lance videographers as we had been in the past. We've taken all of our bookings through the company account this year and split everything 50/50, costs and profit sharing. I believe we have a relatively simple business model, or I did until I started doing our taxes. 

Essentially we book a client, perform the service, and split the payment down the middle. It hits our company account and then we send to each individual account from there. So our records are even very simple and I've just used excel to keep track of those payments as well as the mileage for each of us as we use our own vehicles to travel for work. 

I did the entirety of all of the forms that TurboTax wanted me to fill out as I went along and our balance sheet at the end showed a net gain of 50,000 for the sake of this question. So I added the 50,000 we received as guaranteed payments and checked our k1 forms after and it does show that we were paid the same amount split down the middle and the balance sheet now read as zero, which would make sense being that all of our profit is split down the middle and I would assume we enter our personal business expenses on our personal taxes being that it's a "pass through" structure or whatever you call it. If I did that correctly then the only other issue I have is...

Where the heck do I attach the 1099's we received doing work for other studio's/ companies? It was issued to our business with our EIN number but I cannot find a spot to attach it anywhere. Does this get filed with our business taxes AND our personal? 

Thank you for taking the time to read this, any help is greatly appreciated! 

[Rick19744]

Nothing in the partnership world is simple.....unfortunately.  A couple of comments:

• Based on the facts, I don't believe you have guaranteed payments.
  • A guaranteed payment is made to a partner regardless of the bottom line of the partnership
  • Those aren't your facts.
• Based on your facts, you just split the profits / losses 50/50.
• Based on the above, you should not reflect anything on the guaranteed payment line and the 50/50 split allocation should just be reflected on the K-1 Part III line 1.
• If you actually distributed out cash, then those amounts are reflected on the respective K-1 Part III line 19.
• You do not have to attach any 1099's.  Just keep these with your other books and record information.
• Each partner will then use the K-1 information when preparing their personal 1040.
• Each partner will also need to maintain their tax basis in the partnership interest.

[dylanbaranyk]

That actually helps immensely and I KNEW it didn't seem right as a guaranteed payment but could not for the life of me figure out where that would go. I know none of this partnership stuff is simple but I definitely think the way we do business (book clients, pay 50/50 through our business account and purchase our gear separately) is about as simple as it gets. That's why it was so discouraging not being able to complete the tax info myself. Thank you so much for the info! The only part of that I didn't understand fully was the last bullet point. If you care to elaborate it would be greatly appreciated but you're by no means obligated to and you've helped a ton already.