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Level 2
April 6, 2023
Question

I have partners in a partnership who receive royalty payments ,have an ownership % but do not have profit or loss %. How do I report on the return & K1s the royalies?

  • April 6, 2023
  • 1 reply
  • 11 views
Can this be reported as guarantted payments to partners?
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1 reply

sjrcpa
Level 15
April 6, 2023

No it is not Guaranteed Payments. Royalties are a separately stated pass through item and retain their character. If you know how much each partner received, specially allocate them.

The more I know the more I don’t know.
roycAuthor
Level 2
April 6, 2023

Thank you for the response