where do I post the assets on a balance sheet that a partner contributed to a new partnership. they are fully depreciated from his Sch C business.
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How about showing it at FMV to partnership...After reporting the sales on the Schedule C at FMV.............This post is for discussion purposes only and should be verified with other sources before actual use.
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The assets should be noted on the K-1 checkbox as contributed to the partnership. I do not think any gain is recognized; however, should the assets be sold within a certain number of years, the gain is allocated back to the contributing partner. The assets placed in the partnership would reflect the original cost with an offset for the accumulated depreciation. So, zero net basis for the partnership.
You also have to attach a schedule to the K-1 detailing each of these items and note the K-1 checkbox for the partner.
There is also something to do with specially allocated depreciation for the other partners; although, at this point in time of tax season, I can not remember the details.
This is a complicated area of partnership laws and this a very fuzzy recollection of some of the issues. I recommend an extension for this partnership.Comment
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