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Discussion Forum Index --> Tax Questions --> Partner's guaranteed payments; Deductions from Domestic Prod. Gross Receipts
Tom04 (talk|edits) said:
| 21 February 2006
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| I'm not sure if this has been discussed before but my question is: Can guaranteed payments deducted on form 1065 line 10 be used as a direct or indirect deduction in determining Qualified production activities income.Also, if DPGR is 75% of total GR can I apply 75% to all partnership expenses including guaranteed payments? Any help and discussion on this subject will be greatly appreciated.
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WESR (talk|edits) said:
| 22 February 2006
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| hi GP are deductible for purposes of determining QPAI if allocable to DPGR. you can use the 75% allocation to partnership expenses if facts and circumstances state that is a reasonable method. the trade off with GPs is you reduce your partnership taxable income. so if your GPs is not a true way to compensate a partner who works more than another you may want to treat only the "unequal" pay as GP and everthing else as bottem line income. hope this makes sense.bye
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Pjs (talk|edits) said:
| 22 February 2006
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| Still has to apply W-2 wage limitation; no W-2 wages, no mfg deduction.
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WESR (talk|edits) said:
| 23 February 2006
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| hi correct still needs wages and GPs dont count as wages. also not deductible for self employment tax bye
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