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Level 1

Guaranteed payments

Multi member llc pays weekly guaranteed payments to the 2 owners for fulltime work for business.  Trying to do yearly taxes (1065, etc.). Uploaded from quickbooks to turbo tax. Turbo tax recognizing guaranteed payments but then shows out of balance and that the guaranteed payments are not showing in our books... but Turbo tax pulled ur from our books.. so im very confused.  Is it possible I didn't post the payments in quick books correctly?

Each partner has an equity and draws account as well as an expense account for the guaranteed payments. 

Each week we write a check to partner.  Debit checking account,  credit expense account. 

Any suggestions?

1 Comment
Level 15

Re: Guaranteed payments

@845trans 

 

Guaranteed payments to partners are required to be stated in the partnership agreement, assuming that to be true

 

Guaranteed payments are a business expense, so it sounds like you are posting it correctly, you really only need one guaranteed payment expense account.

 

tax line mapping from desktop to turbo tax was a good idea when conceived over a decade ago, couple of problems with it though, not all tax lines are provided, and some tax forms have changed and desktop has not.

 

Best thing to do IMO is print the P&L, switch TT to the forms view and just plug in the numbers. It really helps if you structure your chart of accounts to match the tax form, using sub account for details

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