payment to a partnership seems odd and incorrect but I keep chasing my tail and I want to get it right going forward.
Thank you.
and Jeff-Ohio saidIs this a guaranteed payment to B or an ordinary deduction with possibly some 1099 obligation to B.
Take your pick, but the guaranteed payment route is fine and (more) proper. And it’s fine with a tiered structure.
RoamingCPA wrote:Thanks for the response CaptCook. Not sure how that would work.
Nilodop wrote:Any method not outlined in their OA must be in writing and signed by all partners. . I was not aware of the "in writing" and "signed by" rules. Is that unique to MMLLCs? Is it recent?
includes the original agreement and any modifications thereof agreed to by all the partners or adopted in any other manner provided by the partnership agreement. Such agreement or modifications can be oral or written. A partnership agreement may be modified with respect to a particular taxable year subsequent to the close of such taxable year, but not later than the date (not including any extension of time) prescribed by law for the filing of the partnership return. As to any matter on which the partnership agreement, or any modification thereof, is silent, the provisions of local law shall be considered to constitute a part of the agreement.
Is this a guaranteed payment to B or an ordinary deduction with possibly some 1099 obligation to B.
Take your pick, but the guaranteed payment route is fine and (more) proper. And it’s fine with a tiered structure.
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