Chris, a 25% partner in Vista partnership, received a $20,000 guaranteed payment in 2007 for deductible services rendered to the partnership. Guaranteed payments were not made to any other partner. Vista’s 2007 partnership income consisted of
|
Net business income before guaranteed payments |
$80,000 |
|
Net long-term capital gains |
10,000 |
What amount of income should Chris report from Vista Partnership on her 2007 tax return?
- $37,500
- $27,500
- $22,500
- $20,000