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Partnership General partner allocation

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    Partnership General partner allocation

    I recently completed a racing partnership return and am just wondering on the general partner income allocation. The general partner received the same income as the limited partners with the exception of a management fee he also received.

    Should the management fee be considered a guaranteed payment and subject to SE income and then the balance of income he received be treated like that of a limited partner?

    Thanks

    Carolyn

    #2
    If this partnership is not a LLC a general partner's share of income is 100% subject to SE, no matter how you call it. However, I would expect to see GP for a general partner, otherwise it wouldn't be fair, if he is doing all the work and gets the same amount of profits as the limited partner.

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