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I once had a persistent client that was a personal driver (limo type) and our city requires a special tax to be collected if you come into the city. He was a couple of months behind and was hounding me, showing up to my office without an appointment, finally I told him, I have never prepared a return for limo drivers but if you really need it, it's going to cost you more then what you earn in a month.

David, You are confusing inside basis with outside basis. The partnership books would show that the partner has $400 basis per your example but the Partner as an individual (his 1040 tax return) only has a basis of $100. If the partners share of losses, as an example, was $400 loss he would have a zero basis as far as the partnership books was concerned but he could only deduct $100 loss on his 1040 and resulting personal basis therefore zero. Remember that in any organization other than a proprietorship there is always and inside basis and an outside (personal) basis. A partnership is complicated. lol

Watch out for those Octonians. Rumor has it, that it is the Octonians building the N Korean missiles. After advanced college calculus and differential equations, I said that's enough math for me. Octonians - "egads".

I would net the grant money against the $ 37,000 cost and depreciate on the net amount. Show the 1099 amount on line 21, then back it out and note how it was reflected on the tax return.

GUILTY!!!!!

Is this a gaggle of nerds or what?

With all this Mumbo Jumbo....I need a MIND MELD....

I prefer Vidalia onions to octonions.

Last time I did an IFTA report, the information needed was miles driven in each state and gallons purchased in each state. Hopefully your guy has provided you with the proper information.

When in danger, or in doubt, run in circles, scream, and shout! (RA Heinlein) I have absolutely NO clue - but thought you might get a chuckle out of the quote.

David, Old Jack gave you the answer in his very first post. I used hypotheticals for the historical cost of $250K and accumulated depreciation of $150K that you didn't supply, but that arrives at the $100K NBV you mention. In this case the entry would be: Debit of $250K to the Fixed Asset account for the original depreciable basis from the Sch C Debit of $300K to the Fixed Asset account for the excess of FMV $400K over the $100K of current NBV transferred in. This is a nondepreciable cost on the fixed asset schedule. Credit of $150K to the Accumulated Depreciation account for the amount already taken by the Sch C Credit of $400K to Partner Capital You might find this article interesting and helpful so you know how to handle the allocations to the partners in the future: Contributions of Appreciated Property to a Partnership: More Than Just a Nice Credit to the Capital Account