Since business use of an asset in a partnership cannot drop I assume that the partners (50/50 hubby and wife) will need to reimburse the partnership by the expenses deemed to be personal including depreciation.
Here are the facts: Client had full fledged cattle business with machinery and horses. They also performed 1099 labor for neighbors. At the end of 2022 they stopped running the farm and moved to another place. They kept one horse and machinery and at this time (might change on the future) only perform 1099 labor with their own equipment, about 25% of the year. What is the best way to account for the personal use/time of the farm assets, especially all expenses around the horses? Machinery possibly still full business expenses?
Income doesn't justify all the related expenses but perhaps this is ok for the first year being at a new place?
Any advise is greatly appreciated, thanks,
Here are the facts: Client had full fledged cattle business with machinery and horses. They also performed 1099 labor for neighbors. At the end of 2022 they stopped running the farm and moved to another place. They kept one horse and machinery and at this time (might change on the future) only perform 1099 labor with their own equipment, about 25% of the year. What is the best way to account for the personal use/time of the farm assets, especially all expenses around the horses? Machinery possibly still full business expenses?
Income doesn't justify all the related expenses but perhaps this is ok for the first year being at a new place?
Any advise is greatly appreciated, thanks,