Guaranteed payment to only one LLC partner

Forum|Forum|3 years ago
February 5, 2023
2 replies
0 views

We have five partners. Only one is guaranteed payments because he directly works for the company. The others do not work in the company. The problem we are encountering is that Turbox distributes guaranteed payment to one partner across all partners. It appears that the partners have been distributed a payment during the tax year as a result. Can the guaranteed payment be set only for the one partner active in the business?

TurboTax Business Windows

Rick19744

Employee

While I am not on a Windows environment, I believe you need to go into the member area and make a specific allocation so the guaranteed payment goes to that specific member only.

I will tag @Anonymous_ as he may be able to show you a screen shot of what I am speaking about.

Edit:

Thanks for the follow-up support @Anonymous_

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Anonymous_

Employee

Untitled.png

Anonymous_

Employee

The next page after the screenshot lists all of the partners. You simply need to select one.

BrittanyS

Yes, you can enter guarantee payments for one partner. To enter guarantee payments in TurboTax Business, you can follow these steps:

Type "guaranteed payments" in the FIND field at the right-hand top of the screen. Select "Jump To guaranteed payments."

Or you can do the following:

Under Federal Taxes, Click the Deductions tab.
Under the Compensation and Benefits heading, Click Start next to Guaranteed Payments
Enter the amount of Guaranteed Payment under From Trade or Business Activity
Select Allocate by Amount

See Tagteam's screenshot as an additional reference

@diversityguru

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