swaitsandClaude Opus 5.5
01c920c4a7
Split kernel::entry_flows into entry_movements and flows_of so the reversal-mirror proof fits CI; prove runs the fast harnesses, prove-slow the 8 slow ones (own job in scheduled CI), prove-all both. Laws in verification.md renumbered 1-31 with a table of all 55 harnesses. MCP docs checked against the 115 tools (about 60 fixes) with a test that every tool is documented; rules.md cross-references fixed; bookspec statuses and loader tightened; viewer notes wrap and accounts sort by code; STATUS.md says P3 is built, cutover pending. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
157 lines
5.0 KiB
TOML
157 lines
5.0 KiB
TOML
# P3 defect 13: four devices two members contribute from personal use, each at the
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# lower of its value and its basis.
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id = "assets-four-contributed-devices"
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title = "Each contributed device takes the lower of its value and its basis; gains and losses are per property"
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rule = "Each item of contributed property is its own: depreciable basis is the lesser of its fair market value and the contributor's adjusted basis; its built-in gain or loss is its own, and gains and losses of different properties are never netted."
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status = "CHOICE"
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sources = [
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"Treas. Reg. §1.168(i)-4(b)(1)",
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"Treas. Reg. §1.704-3(a)(2): section 704(c) applies 'on a property-by-property basis'",
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"Treas. Reg. §1.704-3(a)(3)(ii)",
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"26 U.S.C. §704(c)(1)(C)",
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"DECISION D-41 (owner, 2026-10-20): the depreciable basis of contributed personal-use property is the lesser of its fair market value and the member's adjusted basis, the CPA to confirm (wanderbooks plan/served.md; rules.md B-25)",
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]
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tags = ["fixed-assets", "tax-basis", "partnerships", "704c"]
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[setup]
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currency = "USD"
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fiscal_year_start = "01-01"
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basis = "accrual"
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rounding = "half-away-from-zero"
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[[setup.accounts]]
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code = "1500"
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name = "Equipment"
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type = "asset"
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[[setup.accounts]]
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code = "1510"
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name = "Accumulated Depreciation"
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type = "asset"
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[[setup.accounts]]
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code = "3000"
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name = "Capital, Tobin Harlow"
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type = "equity"
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[[setup.accounts]]
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code = "3001"
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name = "Capital, Morgan Ellis"
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type = "equity"
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[[setup.accounts]]
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code = "6200"
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name = "Depreciation Expense"
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type = "expense"
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[[setup.members]]
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name = "Tobin Harlow"
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capital_account = "3000"
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share = "0.5"
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[[setup.members]]
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name = "Morgan Ellis"
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capital_account = "3001"
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share = "0.5"
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# Four devices the two members contribute jointly from personal use, each
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# at its value. (Nothing rounds here.)
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[[setup.assets]]
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id = "laptop"
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description = "Laptop"
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cost = "1400.00"
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salvage = "0.00"
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life_months = 36
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in_service = "2026-01-01"
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method = "straight_line"
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cost_account = "1500"
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accumulated_account = "1510"
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expense_account = "6200"
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acquired_by = 1
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basis = { rule = "personal_use_conversion", contributor_adjusted_basis = "1750.40", fmv_at_contribution = "1400.00", sec704c_method = "traditional" }
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[[setup.assets]]
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id = "phone"
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description = "Phone"
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cost = "900.00"
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salvage = "0.00"
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life_months = 36
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in_service = "2026-01-01"
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method = "straight_line"
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cost_account = "1500"
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accumulated_account = "1510"
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expense_account = "6200"
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acquired_by = 1
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basis = { rule = "personal_use_conversion", contributor_adjusted_basis = "1129.99", fmv_at_contribution = "900.00", sec704c_method = "traditional" }
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[[setup.assets]]
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id = "camera"
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description = "Camera"
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cost = "1300.00"
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salvage = "0.00"
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life_months = 36
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in_service = "2026-01-01"
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method = "straight_line"
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cost_account = "1500"
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accumulated_account = "1510"
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expense_account = "6200"
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acquired_by = 1
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basis = { rule = "personal_use_conversion", contributor_adjusted_basis = "1080.00", fmv_at_contribution = "1300.00", sec704c_method = "traditional" }
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[[setup.assets]]
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id = "monitor"
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description = "Monitor"
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cost = "500.00"
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salvage = "0.00"
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life_months = 36
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in_service = "2026-01-01"
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method = "straight_line"
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cost_account = "1500"
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accumulated_account = "1510"
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expense_account = "6200"
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acquired_by = 1
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basis = { rule = "personal_use_conversion", contributor_adjusted_basis = "500.00", fmv_at_contribution = "500.00", sec704c_method = "traditional" }
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[[events]]
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date = "2026-01-01"
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description = "Four devices contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "1400.00" },
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{ account = "1500", side = "debit", amount = "900.00" },
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{ account = "1500", side = "debit", amount = "1300.00" },
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{ account = "1500", side = "debit", amount = "500.00" },
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{ account = "3000", side = "credit", amount = "2050.00" },
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{ account = "3001", side = "credit", amount = "2050.00" },
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]
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# Hand check, each device its own: the lesser of value and basis, and the
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# value less the basis.
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[[expect]]
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query = "asset_basis"
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asset = "laptop"
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values = { tax_basis_723 = "1750.40", depreciable_basis = "1400.00", built_in_gain_704c = "-350.40", sec704c_1c = "true" }
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[[expect]]
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query = "asset_basis"
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asset = "phone"
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values = { tax_basis_723 = "1129.99", depreciable_basis = "900.00", built_in_gain_704c = "-229.99", sec704c_1c = "true" }
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[[expect]]
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query = "asset_basis"
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asset = "camera"
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values = { tax_basis_723 = "1080.00", depreciable_basis = "1080.00", built_in_gain_704c = "220.00", sec704c_1c = "false" }
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[[expect]]
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query = "asset_basis"
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asset = "monitor"
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values = { tax_basis_723 = "500.00", depreciable_basis = "500.00", built_in_gain_704c = "0.00", sec704c_1c = "false" }
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# Totals: cost 1,400.00 + 900.00 + 1,300.00 + 500.00 = 4,100.00; §723
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# 1,750.40 + 1,129.99 + 1,080.00 + 500.00 = 4,460.39; depreciable
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# 1,400.00 + 900.00 + 1,080.00 + 500.00 = 3,880.00. The gains and losses
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# are each property's own: the register totals none of them.
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[[expect]]
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query = "register_totals"
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as_of = "2026-06-30"
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values = { total_cost = "4100.00", total_tax_basis_723 = "4460.39", total_depreciable_basis = "3880.00", missing_basis = "0" }
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