Good evening guys.
According to my resources, guaranteed payments are reported by partners for the year in which the end of the partnership fiscal year occurs.
For example. 9/1/11 - 8/31/12. 2011 monthly guaranteed payments of $1000 & 2000/mo in 2012.
Income of $20,000 should be picked up on individual's 2012 tax return.
I'm having trouble understanding this because a fiscal year partnership of 9/1/11 - 8/31/12 should be reported on a 2011 partnership tax return. Wouldn't the $20,000 be on the 2011 K-1 hence individual's 2011 individual tax return?
Thanks in advance for your help!