[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Page S7575]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1672. Mr. BLUNT submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018; which was ordered to lie on the table; as
follows:
Beginning on page ___, strike line ___ and all that follows
through page ___, line ___, and , insert the following:
``(4) Treatment of reasonable compensation and guaranteed
payments.--
``(A) In general.--Qualified business income shall not
include--
``(i) reasonable compensation paid to the taxpayer by any
qualified trade or business of the taxpayer for services
rendered with respect to the trade or business,
``(ii) except as provided in subparagraph (B), any
guaranteed payment described in section 707(c) paid to a
partner for services rendered with respect to the trade or
business, and
``(iii) to the extent provided in regulations, any payment
described in section 707(a) to a partner for services
rendered with respect to the trade or business.
``(B) Exception for certain guaranteed payments.--In the
case of a any qualified trade or business which is a
specified service trade or business and is subject to the
reporting requirements under section 13 of the Securities
Exchange Act of 1934, qualified business income shall include
guaranteed payments described in section 707(c) which are
paid to a partner who owns less than 1 percent of the of the
capital and profits interests of the partnership, but only to
the extent that such payments do not exceed the amounts paid
for the provision of services in the normal course of the
trade or business.
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