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New Member

non-cash guaranteed payments

So I have a partnership in which 1 member drives the company car for personal use as well as business use.  I was told personal use of a company car in a partnership goes under Guaranteed Payments.  However when I do that, TT is counting the vehicle expenses and the guaranteed payments as an expense as well, which makes my income reconciliation on Schedule M-1 off by the amount of the guaranteed payment.   This payment was not made to the partner in cash.  How do I enter this so these expenses are not deducted twice.  I could reduce vehicle expense by the amount of guaranteed payment calculation, but it seems like there is a better way.  

2 Replies
Level 5

non-cash guaranteed payments

i'd reduce vehicle expenses....makes sense since those expenses connected with personal use are personal and not deductible by the partnership....they're part of the guaranteed payments.

Level 15

non-cash guaranteed payments

On the partnership return you do NOT put the vehicle expenses... the partnership does not own the vehicle  ... you only put the guarantee amount. 


The deduction for the vehicle expenses go on the Personal Return ... on page 2 of the Sch E as UPE (unreimbursed partnership expenses)... that is how they are balanced off. 

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