Restaurant is operated as a partnership
One partner works at the restaurant
He is not on the payroll, because that's not how it works
His compensation is either guaranteed payments or distributions, both of which are reported on Schedule K-1
Partner often works in the role of a server
And often receives tips
How are the tips reported?
My thinking is that perhaps the tips should be included in the partnership's gross income
and then treated as a guaranteed payment and reported on Schedule K-1
Anyone have any other ideas?
BMK
One partner works at the restaurant
He is not on the payroll, because that's not how it works
His compensation is either guaranteed payments or distributions, both of which are reported on Schedule K-1
Partner often works in the role of a server
And often receives tips
How are the tips reported?
My thinking is that perhaps the tips should be included in the partnership's gross income
and then treated as a guaranteed payment and reported on Schedule K-1
Anyone have any other ideas?
BMK
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