Partner's Vehicle

Posted by shelleypiano on October 23, 2006, 7:58 pm

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The partnership is purchasing a vehicle for one of the partner's use.
It will be put in the partner's name and the partnership will pay for
major repairs, but NOT gas, oil and other fluids.

Shall I show this as draws to the partner's account and then he can
deduct the vehicle expenses on his own individual tax return; or shall
I indicate on partnership tax return deductions for the vehicle (and
partner would then NOT deduct expenses on his individual return).
Which is the proper way to account for the purchase of the vehicle to
be put in partner's name. The other two partner's have agreed to
purchase the vehicle for the other partner, even though they are equal
partners in the partnership.

Thanks for any advice.

Posted by L on October 25, 2006, 8:30 am

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> The partnership is purchasing a vehicle for one of the partner's use.

> It will be put in the partner's name and the partnership will pay for

> major repairs, but NOT gas, oil and other fluids.

> Shall I show this as draws to the partner's account and then he can

> deduct the vehicle expenses on his own individual tax return; or shall

> I indicate on partnership tax return deductions for the vehicle (and

> partner would then NOT deduct expenses on his individual return).

> Which is the proper way to account for the purchase of the vehicle to

> be put in partner's name. The other two partner's have agreed to

> purchase the vehicle for the other partner, even though they are equal

> partners in the partnership.

Do you really want to trust your tax accounting decisions to a software
users newsgroup?

Posted by Brian on October 25, 2006, 10:31 am

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shelleypiano@yahoo.com wrote:

> The partnership is purchasing a vehicle for one of the partner's use.

> It will be put in the partner's name and the partnership will pay for

> major repairs, but NOT gas, oil and other fluids.

> Shall I show this as draws to the partner's account and then he can

> deduct the vehicle expenses on his own individual tax return; or shall

> I indicate on partnership tax return deductions for the vehicle (and

> partner would then NOT deduct expenses on his individual return).

> Which is the proper way to account for the purchase of the vehicle to

> be put in partner's name. The other two partner's have agreed to

> purchase the vehicle for the other partner, even though they are equal

> partners in the partnership.

> Thanks for any advice.

You should be posting this question in misc.taxes.moderated