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How does a partnership calculate depreciation on property that is contributed by a partner' If the...

How does a partnership calculate depreciation on property that is contributed by a partner' If the partnership incurs additional costs that must be capitalized (i.e., transfer taxes related to changing the title), how are those costs treated'

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Answer #1

Depreciation on property in partnership firm contributed by partner is given as if it is the own property of the firm. Because the moment property is contributed into partnership it is considered as Asset of the partnership firm and depreciation should be provided accordingly.

Additional Costs Incured will also be capitalized to the value of the property if it would be neccesory to bring the asset into working condition for the partnership. ( in includes charges for transfer in title )

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