I have a LLC taxed as a partnership (LLC - A). Among the partners, it has a management LLC (LLC - B) , taxed as a C-corp. Every month, LLC-A will pay LLC-B a fixed sum of monies for guaranteed payment. How should I report this in LLC-B tax returns ? Income ??
I am not in a Windows environment to review TT input, however, I believe you need to go into the member section and specifically allocate the guaranteed payment to LLC-B.
Not doing this, TT will allocate based on ownership %; which is what appears to be happening.
The member section does not allow specific allocation for guaranteed payment.
Found the answer and sharing with the community.
Under Deductions, Compensation and Benefits section, there is a Guaranteed payments sub-section.
There is an Allocate by Amount button. Click on this and follow the rest of the instructions to allocate the guaranteed payment to a specific partner
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