Partnership ?

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  • Bucky
    Senior Member
    • Aug 2005
    • 291

    #1

    Partnership ?

    Partner contributes Equipment to partnership. Basis in equipment is $10000 and fair market value is $15000. Is it correct that the partnership can use $15K for depreciation and contributing partner has no tax consequences.

    Bucky
    Last edited by Bucky; 04-08-2006, 03:40 PM.
  • Bees Knees
    Senior Member
    • May 2005
    • 5456

    #2
    No, it is not true.

    The partnership's basis for depreciation purposes is the contributing partner's basis just prior to the contribution.

    Read Contributed Property Depreciation in TTB, page 25-5.

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    • Bucky
      Senior Member
      • Aug 2005
      • 291

      #3
      Thanks BeeKnees.

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