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I have clients who started the business with 2 partners (50/50) in July 2021. One partner sold his shares to the other partner by Dec 31st,2021. I have to file the 2021 Final partnership 1065 for this business.
I want to ask if I can put depreciation for the business property they bought for doing the business. Is there any way to put the business property to help with reducing the tax? because in the short time period, I don't know if it is correct to do that when the partnership ends.
thank you in advance
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Sounds like the business still exists - a partnership for the period that there were 2 partners and a schedule C starting at the point that the other partner exited stage right. So if they had assets, they should be depreciated.
Slava Ukraini!
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Do I have to file the final 1065- partnership and schedule C at the same time? because Sole proprietor will start in the next year 2022.
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thank you for your reply
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You betcha!
Slava Ukraini!