Hi, how are transfer of fixed assets from s corp to limited partnership be treated? there was no loss or gain on s corp books.=====> The method for transferring assets into the various entities is essentially the same.
The basis in the S-corp is a portion of the distribution to yourself. You have basis in the LP equal to the basis of the distribution for the contribution to the LP as a partner in the LP.unless you own both the S corp and the LP.
Generally speaking, they don?t use a LP to operate a biz unless its general partner(s) are LLCs or corps, since theGP(s) would be liable for the partnership debts. Also, you better not title your home to the LP. Your home is not an investment or biz related asset, and this could persuade a court to disregard your LP;
So, there is a difference between what assets your LP can own, and what assets it should own. your LP is not an ideal entity to hold certain assets, although legally permissible. There are many considerations when you select which assets to transfer to your LP. If your LP has a specific biz purpose, then the LP should own only those assets necessary to fulfill that function. In connection with your question, As long as the owners/stockholders, board of directors approves of the transfer of assets, there should be no problem. Transferring assets to yourLP is not as difficult as you may think. Even though there may be legal or procedural differences between them, An S corp consists of officers and a board of directions, a LP consists of general and limited partners,.
e transaction is a sale of a business asset reflected on form 4797.
is there any regulation i can look up?
========>I guess you may visit the irs website here for more info indetail;
https://www.irs.gov/publications/p544/index.html
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