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.
*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.
