Shane purchased a 25% partnership interest in ML, LLP on January 1 of the current year. The partnership has a section 754 election in place. ML owns depreciable equipment that it originally purchased for $200,000 at the beginning of last year. The equipment is 5-year property (straight-line) with 4 years remaining on its useful life. Shane is allocated a section 743(b) adjustment of $25,000 with respect to the equipment. What is Shane’s total depreciation deduction with respect to the equipment in year 2 on his K-1?
Shane purchased a 25% partnership interest in ML, LLP on January 1 of the current year. The partnership has a section 754 election in place. ML owns depreciable equipment that it originally purchased for $200,000 at the beginning of last year. The equipment is 5-year property (straight-line) with 4 years remaining on its useful life. Shane is allocated a section 743(b) adjustment of $25,000 with respect to the equipment. What is Shane’s total depreciation deduction with respect to the equipment in year 2 on his K-1?
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 21P
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Shane purchased a 25%
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