Guaranteed Payments - QBI

[Corduroy Frog]

For an LLC filing as a partnership

Guaranteed payments to partner - $40,000

It is treated as an expense to the partnership, but is income to the partner.

Does the $40,000 reduce the QBI income of the partnership?  Doesn't seem like it should if W-2 wages paid by the partnership doesn't reduce the QBI.

[Lee B]

According to the Tax Book, Guaranteed Payments are not included in QBI.

[Corduroy Frog]

Thank you.  I did query the Tax Book, but could not find where Guaranteed Payments were addressed with respect to QBI.

[Lee B]

1 hour ago, Corduroy Frog said:

Thank you.  I did query the Tax Book, but could not find where Guaranteed Payments were addressed with respect to QBI.

II have tried The Tax Book's Web Library and wasn't impressed with their search Function, so I use their Print Edition.