MGOAdmin Posted January 22, 2015 Posted January 22, 2015 I just want to confrim that a partner hired in late 2013 (did not reach $115k in wages) would not be considered HCE in 2015 if they received gauranteed payments in 2014 over $115k. This partner is entiitled to less than 5% of the company profits and capital.
Lou S. Posted January 22, 2015 Posted January 22, 2015 I just want to confrim that a partner hired in late 2013 (did not reach $115k in wages) would not be considered HCE in 2015 if they received gauranteed payments in 2014 over $115k. This partner is entiitled to less than 5% of the company profits and capital. Don't you mean 2014 for the bold? If so, I agree. Not and HCE for 2014 based on facts presented. If they earned over $115K in 2014 they would be HCE in 2015, partner or no. Unless using the TGP and they aren't in the TPG.
rcline46 Posted January 26, 2015 Posted January 26, 2015 Also, remember that guaranteed payments are NOT the partner's income and are irrelevant. Must use K-1 income, as adjusted, for earned income.
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