What is a guaranteed payment? How is it reported on Form 1065 and its various schedules? How is it reported to and by the partner? Describe ways in which a guaranteed payment for services differs from guaranteed payments for use of the partner’s capital. 

Form 1065

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1065 U.S. Return of Partnership Income OMB No. 1545-0123 Form For calendar year 2018, or tax year beginning , 2018, ending , 20 2018 Department of the Treasury Internal Revenue Service A Principal business activity Restaurant/Commercial Rental ---------- Go to www.irs.gov/Form1065 for instructions and the latest information. D Employer identification number Name of partnership Beachside Properties LLC 11-1111111 B Principal product or service Туре Number, street, and room or suite no. If a P.O. box, see instructions. E Date business started Food service or 1600 Ocean Vista Way 1/1/2016 C Business code number Print City or town, state or province, country, and ZIP or foreign postal code Total assets (see instructions) 722110 Surfside $ 3,218,100 (1) O Initial return (2) L Final return (3) O Name change (4) D Address change (5) L Amended return (3) O Other (specify) G Check applicable boxes: H Check accounting method: (1) O Cash (2) X Accrual ---- Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year. J Check if Schedules C and M-3 are attached. Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information. 1a Gross receipts or sales. 1a 2,000,000 b Returns and allowances 1b C Balance. Subtract line 1b from line 1a. 1c 2,000,000 2 Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) 2 800,000 3 3 1,200,000 4 4 5 5 6 7 Total income (loss). Combine lines 3 through 7 8 1,200,000 Income