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Posted by zl1515 on March 27, 2008, 12:02 am
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> >> This is the scenario
> >> Rental Property-Purchased thru a Partnership in 2003.
> >> I held 51% interest in the Partnership.
> >> On 12-31-07 I bought my partner's 49% and placed it in the name of my
> >> Revocable Living Trust in order to avoid changing the deed from the
> >> Partnership name.
> >> The IRS no longer recognizes it as a Partnership (since my RLT and I
> >> are the same tax entity).
>
> >> Question:
> >> Is it acceptable to depreciate the first half as usual and the newly
> >> purchased half according to the new basis?
>
> > Since the building didn't change hands........no.
>
> >> I understand that normally buying out a portion of a Partnership would
> >> not alter the basis of the Real Estate the Partnership owns. However,
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> > Looks like you have your answer.
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> > Any new owner/partner buying in at any amount would not change the basis
> > in the asset.
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> >> this is the only asset of the Partnership
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> > And that asset - the building - isn't what you bought.
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> Thanks - this clears up for me what the OP was doing (I think). So, if this
> was me, I would want to get rid of the "partnership with self", and hold the
> property itself in my living trust. What are the tax issues here?
>
> And, what was the purpose for not doing this in the first place? A savings
> in property taxes?
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>
I did not keep the partnership for tax purposes. I kept it for privacy
purposes....makes it harder for a tenant to find where I actually live
(they are low income apartments..I have had problems before).
========================================= MODERATOR'S COMMENT:
- please trim the post to which you are responding
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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