How much of the depreciation deduction in each year

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Point 1: Partners A, B, C and D each contribute $100,000 for 25% of the ABCD partnership. The partners all meet the three tests for economic effect, and the four tests for allocation of nonrecourse deductions are met as well. They use the $400,000 cash and $3,600,000 of nonrecourse financing to buy a building that is depreciable over 20 years on a straight line basis. Income equals expenses in all years, except for depreciation, which is allocated completely to D.

Question 1: How much of the depreciation deduction in each year (from year 1 to year 3) will D be allowed to take?

Reference no: EM132488912

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