# Enrolled Agent Exam [Part 2] 09, Guaranteed Payments to Partners — §707(c)

Page: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-09-guaranteed-payments-to-partners-707-c
Text version: https://stenobird.com/podcast/finance-exam-prep-7658413/enrolled-agent-exam-part-2-09-guaranteed-payments-to-partners-707-c.md
Podcast: [Finance Exam Prep](https://stenobird.com/podcast/finance-exam-prep-7658413)
Published: 2026-05-06T22:41:20+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/14e88600-e412-437b-8305-3bc9b2dc997f.mp3
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Duration seconds: 216

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Guaranteed payments under §707(c) are fixed payments for services or capital use, determined without regard to partnership income. - The receiving partner reports guaranteed payments as ordinary income, while the partnership deducts them as a business expense. - Payments made for services are subject to self-employment tax for the recipient partner. - A partner must report guaranteed payment income in the same tax year the partnership deducts it, regardless of when the cash is received. - Guaranteed payments are required even if the partnership has a loss, and the payment can create or increase the partnership's ordinary loss. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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