Under the Internal Revenue Code sections pertaining to
partnerships, guaranteed payments are payments to partners for

(c) The requirement is to determine the correct statement
regarding guaranteed payments to partners. Guaranteed
payments are payments made to partners for their services or for
the use of capital without regard to the amount of the partnership’s
income. Guaranteed payments are deductible by the partnership
in computing its ordinary income or loss from trade of
business activities, and must be reported as self-employment
income by the partners receiving payment.