Capital Gainontransferred of property from firm to partner

 

Q. A Partnership Firm having 2 Partners say A& B and the partnership firm has purchases 2 offices in the name of the partners as first office in the name of A& B and Second office in the name of B&A but the firm has invested the full amounts for purchases of both the property and Depreciation has also claimed by the firm on both the offices . and now the partner’s wants to keep that property as Individual name say first Property Wants in the name of A and Second Property in the name of B all the formalities related to Transfer has been done. In that case capital gain will be attracted to the partnership firm or not.  
 
If the property has been done in the Individual name in that case partnership firm can claimed the Depreciation or not or if Depreciation not claimed then the firm can pay the rent to each partners for utilizing the offices please advice to me.
Replies (1)

Mr.Gopal Kumar Agarwal

There are case laws  supporting the veiw that if any property is transferred to a partner, the said transfer is the drawings of that partner.  But to complete the transaction Stamp Duty has to be paid.  It is not a sale from the firm to the partner.  You have to carefully draft the transfer deed.

Best Wishes

Sathikonda

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