If guaranteed payments are made to partners who have direct involvement in the production of goods that are sold, do you classify those guaranteed payments as part of cost of goods sold, or are they still considered an expense?
I have come across conflicting information, thank you in advance.
Guaranteed payments to partners goes on line 10 of the form 1065 : https://www.irs.gov/forms-pubs/about-form-1065
Guaranteed payments to partners goes on line 10 of the form 1065 : https://www.irs.gov/forms-pubs/about-form-1065
Yes, I knew that, thank you, but are guaranteed payments included as part of the "costs of goods sold" deduction?
That was a very good way of explaining your answer...thank you. To see the tax form was very helpful , and made it very clear. I appreciate your time.