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Is it possible for you to provide a link or url to the prior answer as it seems you did not use the same account for this and the prior question? Or our search is not working for me?
That will likely same time and effort as this answer can be based off that answer.
I was JACUSTOMER-fmf6vhac when I talked with megan c of justanswer.tax on 9/15/2013 at around 7:00 pm. I noticed the dialogue was on google.
Is this the conversation?
Regardless of profitability was there a reason these expenses were not accrued to the partnership (you would not have had to report income on the cash basis)?
Do the other partners agree that this is a debt of the partnership and is it somehow recorded in partnership records now (even though not on the accounting in the year accrued) ?
Were there rental agreements such that this is a transaction not between the partnership and you as a partner but rather between you as a renter of equipment?
Even though insolvent will the partnership continue or be dissolved?
Have liquidating distributions already been made and if not, will this be part of that computation?
Do you understand that whether this is a partnership to partner transaction such as an investment or whether this is a transaction with you in a capacity not as a partner may decide the issue but that is based on the facts and circumstances in your case so that a definitive answer is not likely possible in this venue ?
Do you want Megan to clarify or another expert?
Thank you for the information.
yes I think that is the conversation. The expenses were not accrued to the partnership because the rental use was ongoing in establishing the nursery site. The partners know that these rental costs are owed by the partnership because I have provided them with cumulative costs listing each piece of equipment and time used. There were no formal rental agreements but the partners knew I owned the equipment and rented equipment to the partnership as well as other farmers. This is a handshake farming community. No, this partnership will not continue and will be dissolved by year end. There will be no liquidating distributions. We are insolvent with no liquid assets. Our bank debt has been paid off. I would like megan c to clarify if you can not provide a definitive answer.
Megan: did you read my question today. I asked that because I use the cash basis for my books, does this invalidate taking an ordinary deduction because I did not record this A/R in my previous tax returns.