Cam partner receive a tax deductible salary?

A partner can receive a salary from a partnership. However he would be treated for income tax purposes as a a partner who is entitled to a first share of profits, and who is in all other respects an ordinary partner. As such a salary payment would not be deductible for the partnership in computing the profits and it would simply be a means of allocating after tax profits. The alternative would be for the individual to be an employee and not a partner at all. This type of arrangement is often given to someone to reward them by calling them a partner without giving them a partnership interest. As an employee though the salary would be deductible for the partnership. Whether a partner was a 'genuine' partner or an employee would depend on whether he was entitled to participate as a principal in the general management and conduct of the business.