How should guaranteed payments be treated on the partnership return?
• The following example illustrates how they should be treated. There are two partners in the partnership. Partner one is a resident of Georgia and owns 25% of the partnership. Partner one receives a guaranteed payment of $10. Partner number two is a nonresident of Georgia and owns 75% of the partnership. Partner two receives a guaranteed payment of $40. The profit and loss sharing ratio is the same as the ownership percentage. The Georgia apportionment ratio on line 4, part 2, schedule 6, of Form 700 is 50%.
