Announcement

Collapse
No announcement yet.

Negative Depreciation

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Negative Depreciation

    Situation: Partnership (Farm) claiming a Sec 754 election. Assets have been appraised. Most of the assets have a step-up in basis. For the assets with a step-down in basis, do I take negative depreciation?

    Thanks in advance.
    Tags: None
    #2
    Don't think so

    The beauty (or curse) of step-up is that no income is attributable to the increase in carrying value. For the same reason, no expense would be attributable to the loss in carrying value, if any.

    What has given rise to the ยง754 election??

    Comment

      #3
      Death

      The 85% partner died. That's the reason for the Sec 754 election.

      Comment

      Previous template Next

      Disclaimer

      Collapse

      This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

      Working...
      X