Lashawn Zabarkes: Hi Tro, No, No No. Guaranteed payments does NOT reduce partners capital account (or basis) for tax purpose.
Nicolas Cooley: in case you're taking the HR Block direction you're assured an interview. in case you pass on line to affix for a variety and there are not any training on your section then call their district workplace on your section. a minimum of one workplace is open 3 hundred and sixty 5 days around yet no longer customary..some districts, no longer all, have a pilot software this 3 hundred and sixty 5 days the place they are hiring human beings and giving them the class (paid time)....Show more
Rayford Latz: Guaranteed payments are deductible by the LLC as business expenses and the net profit of the LLC is reduced by that amount. The bad news for the member receiving the guaranteed payment is that the payment is treated as ordinary income.As ordinary income, guaranteed payments aren't subject to income tax and FICA tax withholding! as a salary would be; instead, guaranteed payments are subject to estimated income taxes and self-employment taxes. What this means is that the LLC saves on FICA taxes but the member has to carry the burden of self-employment taxes....Show more
Agustina Stimmel: don't the guaranteed payments reduce your capital account?
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