Am I a Partner?

[rcline46]

Equity partners form a committee to determine my income for the year. They give me guaranteed payments and a K-1 at year end. I am referred to as a partner.

Does this really make me a partner to the extent of my pay as a ratio of total K-1"s, and if so, should the numbers (pay and ownership percentage) make me a KEY employee and thereby missing out on the Top Heavy Contribution?

This could get interesting if I go in and out of KEY with my account sometimes in the calculation and sometimes ignored!

[Lou S.]

If I remember correctly your partnership interest is the greater of your capital interest or profits interest in the firm. Both of these I believe are reported on the the K-1 - Part II, Item J.