[Tobecpa1]

Q: Furniture and Fixture contributed to a partnership on April -2012 with a FMV $12,000 and basic $10,000. What is the depreciation expense for the year?

Thanks for your inputs.

[tough_kitty]

From what I remember – contributed assets to a partnership have a carryover basis so you'd use $10,000.

Useful life for furniture is 7 years and you'd use MACRS depreciation with mid-year convention in the year of purchase/contribution.

So, 10,000/7 x 2 (to reflect 200% depreciation) = 2,857/2 (to reflect the first half-year of depreciation) = 1,429 (rounded)

I did it on my phone based on what I remember without referencing to my notes so I hope it is correct. I'm sure someone will correct me if I'm wrong.

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[tough_kitty]

From what I remember – contributed assets to a partnership have a carryover basis so you'd use $10,000.

Useful life for furniture is 7 years and you'd use MACRS depreciation with mid-year convention in the year of purchase/contribution.

So, 10,000/7 x 2 (to reflect 200% depreciation) = 2,857/2 (to reflect the first half-year of depreciation) = 1,429 (rounded)

I did it on my phone based on what I remember without referencing to my notes so I hope it is correct. I'm sure someone will correct me if I'm wrong.

FAR: 81 (May 2013)
BEC: 81 (July 2013)
REG: 83 (August 2013)
AUD: 82 (November 2013)
California CPA since 1/30/14

[Author]

Replies