Question

as a general partner in greenland associates, an individual's share of partnership income for the current tax year is $25,000 ordinary business income and a $10,000 guaranteed payment. the individual also received $5,000 in cash distributions from the partnership. what income should the individual report from the interest in greenland?

Answer 1

The individual's total income from Greenland Associates for the current tax year is $40,000, consisting of $25,000 ordinary business income, a $10,000 guaranteed payment, and a $5,000 cash distribution.