Question: Guaranteed payments made by a partnership to partners for services rendered to the partnership, that are deductible business expenses under the Internal Revenue Code, are

Guaranteed payments made by a partnership to partners for services rendered to the partnership, that are deductible business expenses under the Internal Revenue Code, are I. Deductible expenses on the US Partnership Return of Income, Form 1065, in order to arrive at partnership income

(loss).

II. Included on Schedule K-1 to be taxed as ordinary income to the partners.

a. I only.

b. II only.

c. Both I and II.

d. Neither I nor II.

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