Items from other entities

Question 1

A complex trust makes a distribution, who is responsible for the tax liability on the distribution?

Answer 1

The beneficiary receiving. Trusts r sep tax paying entities. distributions made by trusts r deductible by the trust but taxable to the recipient

Question 2

How are guaranteed payments to partners reported?

Answer 2

are deductible on form 1065 to arrive at partnership ordinary income. On schedule k-1 they are shown as income and flow through as ordinary income