Client has purchased a partial interest in several cattle used for breeding. Cannot find any information regarding whether this constitutes a partnership type relationship, since the entire interest is not being purchased. Client has stated that this is a common practice in this type of business.
Additionally, how should this partial interest be recorded for depreciation purposes? Should this be listed on the depreciation schedule as “Cattle (1/2 interest)” or something similar? Would the inclusion of the “1/2 interest” verbiage be a red flag to the IRS in any way?
Thanks