Shane purchased a 25% partnership interest in ML, LLP on January 1 of the current year.  The partnership has a section 754 election in place.  ML owns depreciable equipment that it originally purchased for $200,000 at the beginning of last year.   The equipment is 5-year property (straight-line) with 4 years remaining on its useful life. Shane is allocated a section 743(b) adjustment of $25,000 with respect to the equipment.  What is Shane’s total depreciation deduction with respect to the equipment in year 2 on his K-1?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 32P
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Shane purchased a 25% partnership interest in ML, LLP on January 1 of the current year.  The partnership has a section 754 election in place.  ML owns depreciable equipment that it originally purchased for $200,000 at the beginning of last year.   The equipment is 5-year property (straight-line) with 4 years remaining on its useful life. Shane is allocated a section 743(b) adjustment of $25,000 with respect to the equipment.  What is Shane’s total depreciation deduction with respect to the equipment in year 2 on his K-1? 

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