We formed a three-member LLC last year and I am trying to do our taxes for the partnership for the first time. I have an issue with "Guaranteed Payments".
We are on an accrual basis and the three partners draw a bi-weekly salary (no employees).
My issue is that due to cash flow issues, our 'guaranteed' salary has not always been paid. As such, I created a 'Payable' where we intend to pay each other once we have enough cash to do so. On my books, I record the guaranteed payment at 100% against a liability account designated for that purpose. As payments are made, I reduce the liability against cash. How is this supposed to appear in TurboTax? My understanding is that we should only consider actual payments (i.e. cash) as 'guaranteed' rather than what I have accrued in my books. Am I correct in this assumption? Or do I list the full amount accrued?
Thanks,
Mike
