How much of the tax depreciation


A and B form the equal AB partnership. A contributes property (FMV = $100,000, basis = $60,000) and B contributes $100,000 cash. The property is depreciated straight line over a 10 year life for both book and tax purposes. Using the traditional method under Code Sec. 704, how much of the tax depreciation in the first year will A get?How much will B be allocated?How much of the gain would be allocated to A if the asset is sold for $110,000 at the beginning of year 2?

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Accounting Basics: How much of the tax depreciation
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