If a partner contributes depreciable or amortizable property to the partnership, how is the basis of those properties recovered? In addition, what types of expenditures might a new partnership incur? How are those costs treated for Federal tax purposes?

In the job aid below, for each expenditure listed, select the tax treatment of expenditures of a new partnership and the applicable Code section.

Type of Expenditure		Contributed depreciable or amortizable property
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 monthsPartnership steps into shoes of contributing partner
Reference		162 168(i)(7), Reg. 1.167(a)3 195 709 197Reg. 1.167-3
Type of Expenditure		Acquisition of property
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 months
Reference		162 167, 168, 179 195 709 197Reg. 1.167-3
Type of Expenditure		Startup expenses
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currently$5,000 expensed; remainder capitalized and amortized over 180 months
Reference		162 167, 168 195 709 197Reg. 1.167-3
Type of Expenditure		Organization costs
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currently$5,000 expensed; remainder capitalized and amortized over 180 months
Reference		162 167, 168 195 709 197Reg. 1.167-3
Type of Expenditure		Syndication costs
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 months
Reference		162 167, 168 195 709 197Reg. 1.167-3
Type of Expenditure		Goodwill and similar intangible assets
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 months
Reference		162 167, 168 195 709 197Reg. 1.167-3
Type of Expenditure		Other intangibles
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 months
Reference		162 195 709 197Reg. 1.167-3
Type of Expenditure		Ordinary and necessary post-operating business expense
Treatment		Amortized over 15 yearsAmortized over useful lifeCapitalized and depreciatedCapitalized; no amortization permittedDeductible currentlyCapitalized and amortized over 180 months
Reference		162 167, 168 195 709 197Reg. 1.167-3