swaitsandClaude Opus 5.5
2f999c6050
check / check (push) Canceled after 0s
Book value is cost less what the books posted; the schedule's figure is apart. An asset's acquired date comes from its entry. Contributed property keeps its section 723 carryover basis apart from its depreciable basis (the lower of value and adjusted basis), with its 704(c) built-in gain and method. The K-1 worksheet reports tax-basis capital (Form 1065 Item L) beside the book figures, leaving open what only the CPA knows. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
156 lines
4.8 KiB
TOML
156 lines
4.8 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 = "AUTHORITY"
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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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]
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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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