Line 4b on schedule K is for guaranteed payments made for the use of capital. We don't have that in these facts.
Using the M-1 to reduce the guaranteed payment reported on page 1 is the method that should be used. If TT can offset the amount on line 10, perfect, if not, no big deal as at the end of the day as long as the M-1 reduces page 1 line 22 you get the correct result.
*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.
