Partnership ?

[Bucky]

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

[Bees Knees]

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.

[Bucky]

Thanks BeeKnees.