Guaranteed payments are basically payments for which the partners have first priority and which are guaranteed regardless of the partnership's income. These payments are deemed to be compensation for services provided by the partner or use of his/her capital. Guaranteed payments can have specific tax consequences both for the partners and for the partnership. For the latter, they are usually considered regular and customary business expenses and therefore, can be deducted from the partnership's net income. But what about the partners? What tax implications do you believe guaranteed payments create for them?