Asset transfer Partnership to Sch. C

[Gretel]

Partnership files final short year tax return. Business continues as Sch. C business. Sch. C business will continue to depreciate using dates placed in service and accumulated depr. from partnership but will use full year depreciation, right?

[Bees Knees]

Partnership files final short year tax return. Business continues as Sch. C business. Sch. C business will continue to depreciate using dates placed in service and accumulated depr. from partnership but will use full year depreciation, right?

The Sch. C business will use the portion of depreciation not used on the final return of the partnership due to the short year rules. TTB page 9-13 says MACRS percentage tables cannot be used with a short tax year. So you have to use short tax year rules in the final year of the 1065 and then give the Schedule C the rest. Then in the following years, the Schedule C gets all the remaining depreciation.