Kendall is a partner in a legal firm. She is guaranteed a payment of $70,000...
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Accounting
Kendall is a partner in a legal firm. She is guaranteed a payment of $70,000 each year without regard to the firm's profits or losses. Assuming the payment is correctly reported to her on a scheduled K-1, how should Kendall report this income on her tax return?
a) passive income, reported on Schedule E.
b) nonpassive income, reported on Schedule E.
c) wages, salaries, tips, etc., reported directly on Form 1040.
d) other income, reported directly on Form 1040.
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