What are payments made to a partner that are determined without regard to the partnership income called?

Guaranteed payments are payments made to a partner that are determined without regard to the partnership's income. These payments are essentially compensation for services rendered or for the use of capital. Unlike typical profit distributions that depend on the profitability of the partnership, guaranteed payments are agreed upon in advance and must be paid irrespective of the business's financial performance. This ensures that partners who contribute their expertise or investment can receive a predictable income stream.

This characteristic makes guaranteed payments particularly significant in the context of partnerships, as they provide a measure of financial stability for partners who may be taking on a more active role or are providing critical resources to the partnership's operations. The payment structure is outlined in the partnership agreement, establishing a clear expectation for partners regarding their compensation.