[k1zuna]

I know guaranteed payments don’t increase a partner’s basis because it’s treated like ordinary income/compensation to the partner. But doesn’t it somehow decrease a partner’s basis because it’s an expense that’s subtracted from ordinary income, and we know that partnership losses reduce a partner’s basis? So guaranteed payments really reduce a partner’s basis!?!?!?

I’m getting myself confused…

FAR - Passed
AUD - Passed
BEC - Passed
REG - 8/22/2013

[k1zuna]

Thanks again mangos! I just get tripped up when becker says “guaranteed payments don't affect partner's basis”

I'm slacking off lately since my exam is on 8/6. I'm almost done with the MCQS on partnerships, then I have to watch the remaining lectures and do the MCQS and sims.

When are you taking REG?

FAR - Passed
AUD - Passed
BEC - Passed
REG - 8/22/2013

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