A partner is required to provide a vehicle for partnership business, how do you depreciate the vehicle and deduct it as unreimbursed partner expenses?

[bdingramcpa-gmai]

This is a landscape business with 2 partners and each provides their own vehicle as well as pays their own gas per the agreement.  A new truck was purchased that we want to take bonus depreciation on.  Is there a way to have they system calculate that?

[PhoebeRoberts · Accepted solution]

You can link the depreciable asset to the 1065 K-1 in the 1040 package. The 2106 input can also be linked to the 1065 K-1 for the rest of the actual expense. UPE is a partner-level item, not a partnership-level item.

[BobKamman]

Whose name is on the title?

[qbteachmt]

A new 1500 Truck? Dually 3500? Does it qualify? Have you read:

https://www.irs.gov/pub/irs-pdf/p463.pdf

[bdingramcpa-gmai]

The truck is a 2500 Diesel which is required to pull heavy landscaping & dump trailers filled with rock and other materials. The truck is in the partners name not the partnership name.

The partnership agreement states that each partner shall provide their own vehicle. The reason for this if fairness in the type of vehicle they choose.