should the guaranteed payment on my partnership return qualify for the qbi?

[ColeenD3 · Accepted solution]

No.

Sec. 199A and guaranteed payments

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.

Guaranteed payments and QBI