Partnership ops — guaranteed payments

What this does

How to read it Visual: compare GP vs share as bars — don’t double-count the GP inside the %.

Split partnership profit into a guaranteed payment (like a priority salary) vs the remaining distributive share. See how ordinary income stacks for partner A.

Visual: compare GP vs share as bars — don’t double-count the GP inside the %.

Calculator

Partnership ordinary income (before GP) Guaranteed payment to Partner A (for services) Partner A profits interest % Separately stated §1231 / capital (A’s share already)

Partner A · total ordinary

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Guaranteed payment + residual distributive share (don’t double-count GP).

GP vs distributive share vs total

Guaranteed payment

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Distributive share

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Exam trap: Guaranteed payments are deductible in computing partnership ordinary income and are ordinary to the partner (often SE for services). Distributive share is residual after GP. Don’t double-count GP inside the % share.

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Study tool only — not official IRS software. Figures labeled 2025 track law/forms through Dec 31, 2025. Confirm against current IRS pubs before the exam.