[jay1942]

I have a partnership and I did the books myself. One of my partners is a 1% owner. I gave him a k1 for the 1% in losses we had and a 1099 misc income form for the income i paid him as a salary *(not a disbursement as he did not put any capital in the practice)* I did not give him a W2. Was/IS this correct?

BEC 3x 77 expires 1.30.16
AUD 2x 80 expires 10.31.15
REG 2x 86 expires 2.28.16
FAR... 7-15 .. 48* .. 77
* Did Not study at all

[leglock]

If it was a gtd pmt i think it should b shown on his k1 as a separately stated item and no 1099 was needed. If it is a gtd pmt it would reduce the income of the pship i believe

[gorbuha]

I think partner's salaries are not included in the calculation of the partnership income.

FAR - 89
AUD - 84
BEC - 84
REG - 49, 86
ETHICS - 96........ DONE!!!

[leglock]

Just looked it up to get some clarity. If its a gtd pmt ie a salary it is deductible as a business expense and would reduce pship income and is shown separately on k1. If its not a gtd pmt its basicslly a distribution that does not affect pship income

[rzrbkfaith]

I agree with leglock. It should have been on the k-1, deducted as a business expense for the partnership and I believe it is subject to withholding… If it truly was a salary.

AUD - 99
BEC - 97
REG - 91
FAR - 1/8/16

[Author]

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