I guess I need some more facts as I'm not real clear on the end goal:
- Guaranteed payments (GP) are paid to a partner (member) and are determined independent of the partnership's (LLC) operating results.
- These amounts are paid for providing services or capital to the partnership / LLC.
- These GPs are reported on the partners tax return in the year they are deducted by the partnership.
- GPs are always ordinary income to the respective partner / member
- Guaranteed payments do not impact the capital account of a partner / member
- Since you have active trades and businesses, I need to understand why some GPs need to be capitalized
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
