B is corrent. Guaranteed payments to partners are deductible in computing partnership ordinary income. There would be no NOL deduction, since prior losses would have already been passed through to partners. Since charitable contributions are subject to percentage limitations, they must be separately passed through to partners and cannot be included in computing ordinary income. A deduction for a partner’s personal exemptions would be allowed on the partner’s tax return, not on the partnership return.
A is incorrect. A partner’s personal exemptions have no effect on the partnership.
C is incorrect. Contributions must be separately stated on Schedule K.
D is incorrect. A partnership cannot have a net operating loss deduction.
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