Depreciation of Equipment

[quicksam]

Have a Father and two son Partnership...One of the partners brought in his personal return info, and he has 3 farm tractors purchased last year. Partnership is a farm. This partner said the Partnership pays for the tractors, but they are in his name and not the LLC of the Partnership. He wants to depreciate them on his return and file them as Unreimbursed Partner Expense against his K1.

I believe we should depreciate them on the Partnership Return since the Partnership is paying for them.

How would some of you handle this?

[taxea]

He might be able to depreciate them on a 2106 but I wouldn't if the company is paying for them. They need to be registered to and listed as a partnership asset. Then if the partnership agreement says that he can take the depreciation in full each year that would be indicated on the K-1 and pass thru to him. Do you have a copy of the terms of the partnership agreement?

[DexEA]

Trick answer?

He might be able to depreciate them on a 2106 but I wouldn't if the company is paying for them.

Why would you suggest a 2106?