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I am trying to find out how we properly make a 1 time

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Good Morning, I am...

Good Morning, I am trying to find out how we properly make a 1 time adjustment for special depreciation on the owners K1's. We agreed to give one partner the full 50% on the equipment we leased last year which is different from our ownership % split

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

That is it.

Submitted: 1 month ago.Category: Tax
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3/7/2018
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,038
Experience: Adjunct Professor
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Hey! I'm Carter, I'm a CPA and can help you out.

That's just a different allocation split. If its 179 depreciation, then just calculate how much you want to allocate to each partner and put that in box 12.

If its bonus depreciation, then you just need to calculate profit without the depreciation and calculate the allocations. Then allocate the bonus depreciation to each partner. Add the profit allocation and bonus allocation and that goes to line 1.

Let me know if you need anything else. If not, please leave a rating. Thanks!

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Customer reply replied 1 month ago
if I understand, I would take the depreciation for the truck lease out, calculate what the proper split would be by ownership %, then simply just add the one time special depreciation 50% to his in box 1. Since turbo tax makes you add the asset for the balance sheet and depreciation, I guess I will just override the each K1 and put the corrected number in Box 1
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago

Yup. That's the best way to do it.

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