Catherine Posted April 5, 2012 Report Posted April 5, 2012 Very small partnership. Two partners. Own a small private plane together and were advised to form the partnership to share expenses for the plane. Private enjoyment and personal use only; NO business purpose at all. No outside income; equal contributions to capital for upkeep etc. Partnership owns the plane now - they bought it together years ago and deeded it over to the partnership when it was formed. 50% each of value to partner's capital. Does this plane get depreciated? I should think NOT since there is no business use. But I've never dealt with a no-business-purpose deal like this and figured to run it by y'all. Catherine Quote
michaelmars Posted April 5, 2012 Report Posted April 5, 2012 no profit motive, no depreciation. business use is 0 1 Quote
kcjenkins Posted April 5, 2012 Report Posted April 5, 2012 Nope. This is a partnership only in the personal sense, not a 'business' partnership. A smart way to protect the friendship, IMHO, but not in anyway tax related. 1 Quote
Catherine Posted April 5, 2012 Author Report Posted April 5, 2012 Thank you both -- getting to that point in tax season where simple questions set off a long chain of concerns that you then are too confused to sort through! Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.