Partners use of Partnership Vehicle

[equinecpa]

I have a client that used his partnership vehicle in his own personal business (it's a large truck). He personally paid for the gas when he used the vehicle.

I believe a guaranteed payment will be added to his K-1. How is it calculated-do you use the fringe benefits rules for employees?

Then what do I do for his business. Can I claim the fringe benefit as a deduction there?

My searches have no come up with how to compute this benefit.

Thanks

Carolyn

[erchess]

My Notions

I agree that he has income from the use of the truck. I would make the partners put in writing what they think the value is. I would be thinking along the lines of what it would have cost him to lease the truck from a dealer unless the non partnership usage was so little that we are talking about the cost of rental from a rental car company.

I have not had a partnership return to do in many years but I find myself questioning whether it is a guaranteed as opposed to ordinary payment to the partner. (Is it possible that all payments to partners that do not represent their distributive share of profit are guaranteed payments?)

As to the relevance of the employee fringe rules I thought different rules applied to fringes for owners of businesses. But I am not sure because I have never had a client who paid fringe benefits.

I hope this bump helps you get some help from people who know more than I do.