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Which is most likely to qualify as a guaranteed payment

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Problem 1: Which of the following is most likely to qualify as a guaranteed payment under Sec. 707(c)?

A. A, B, and C decide to form a partnership to build an apartment building. A, an architect, draws up the plans for the building. The partnership pays A his usual fee.

B. A and B contribute cash to their partnership as a capital contribution and agree that the partnership will pay them an 8% annual payment for the use of their capital. The partnership pays the annual amount.

C. A, a partner in the AB Partnership, lends $10,000 to the partnership on a 10% 1-year secured note. Regular payments of interest are made.

D. B, a stockholder and a 30% pa ner, sells stock to the ABC Partnership. The stock is sold for its fair market value.

Reference no: EM132688855

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