Transfer of a fixed asset between civil partnerships

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It is difficult to imagine running a business without various types of assets necessary in business activity. Therefore, many entrepreneurs encounter the concept of fixed assets that can be purchased, produced, transferred from private property to the company, and also transferred between individual companies. In this article, we will discuss in detail the transfer of a fixed asset between civil partnerships.

What is a civil partnership characterized by?

The basis for the registration of a civil partnership is a written partnership agreement, which does not have to be drawn up by a notary public - the partnership itself does not have legal personality and legal capacity. The subjects of the law are then the partners of the civil law partnership themselves. At least two partners are required, which may be natural or legal persons. When establishing a company, they undertake to pursue a common, specific goal by making a contribution or otherwise.

There is no minimum share capital, and the own contribution, apart from money and assets, may also be the knowledge or specialist skills of the partners. It should be assumed that the capital contributed by each partner has the same value.

A civil law partnership is characterized by joint and several liability of partners for corporate obligations, not only joint assets, but also individual ones. The creditor of a civil partnership may choose from whose assets he wants to satisfy his claims, and the spouses of partners who have joint property are also jointly and severally liable for the company's obligations.

Unfortunately, the regulations in force in Poland do not contain detailed legal regulations with regard to civil partnerships, which results in quite difficult settlement of disputes. An example may be the transfer of a fixed asset by one partner between civil partnerships.

Withdrawal of a fixed asset from a civil law partnership for the benefit of a partner

In order to transfer a fixed asset between civil partnerships, the asset must first be withdrawn from the first civil partnership for private purposes, and then transferred to the second civil partnership.

Due to the fact that a civil law partnership does not have legal personality, it cannot be the owner of the property. Assets belong to the partners of the company. Thanks to this, it is relatively easy to withdraw a fixed asset from a civil law partnership and transfer it for private purposes. It is enough to prepare an appropriate fixed asset withdrawal protocol, which should be kept in the company's documentation.

It should be borne in mind that, as a rule, an asset withdrawn from a civil law partnership remains the property of all partners of a given company, but it is only in their private property. However, there are no contraindications for the partners to decide to transfer a fixed asset owned by the company to only one of the partners. This can be done for free or for an appropriate fee.

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How to account for the withdrawal of an asset from a civil partnership for private purposes of partners or a partner?

As a rule, the transfer of an asset from a civil partnership to the private property of partners does not imply the need to pay income tax both from the partnership and from the private assets of partners.

On the other hand, if the partners decide to transfer an asset to only one of them, as long as the transaction is free of charge, we can still avoid the need to pay the tax, but we need to take into account the provisions relating to inheritance and donations.

In the event that the transaction of transferring an asset to one partner will be of a pecuniary nature, i.e. the remaining partners receive payment for their share of joint ownership of a given asset, they are required to demonstrate income on this account.

Transfer of a fixed asset between civil partnerships by one partner and depreciation

The next step to transfer a fixed asset between two civil partnerships is the transfer of an asset from the private partner's property to the other civil partnership. For this purpose, an appropriate protocol should also be prepared, which is kept in the company's records.

The value from which the depreciation of an asset entered in the fixed assets register of the second civil partnership will be made depends on the redemption of the fixed asset made in the first civil partnership. The depreciation of a fixed asset in the part belonging to a given partner, started in the first civil partnership, should be continued. The part of the fixed asset belonging to the other partners may, however, be fully depreciated in the other company. Let's explain this with an example.

Example 1.

Mr. Adolf is a partner in two civil partnerships. It holds 50% of shares in both of them. One of the companies (company A) has a computer team worth PLN 30,000 entered in the register of fixed assets, depreciated on a straight-line basis. The partners decided to transfer the fixed asset for private purposes to one of the partners - Mr. Adolf. This transaction was for pecuniary interest, which means that Mr. Adolf paid the other partners for their part of the joint ownership of the asset. So far, company A has made twelve depreciation write-offs in the total amount of PLN 9,000.

Then the entrepreneur decided to introduce a computer team to the register of fixed assets in the second civil partnership. From what value can you make depreciation write-offs in the second civil partnership (partnership B)?

Mr. Adolf was a co-owner of a computer team in 50% corresponding to the value of PLN 15,000. This means that in the second civil partnership B, the depreciation of the fixed asset from this amount should be continued. In civil law partnership A, a part of this amount (50%), namely PLN 4,500, was depreciated. The part of the fixed asset belonging to the other partners, corresponding to the value of PLN 15,000, may be fully depreciated in the other company.

Therefore, in a civil law partnership B it is possible to make depreciation write-offs on the amount of:PLN 10,500 + PLN 15,000 = PLN 25,500

Summing up, we can say that the transfer of a fixed asset between civil partnerships does not require many formalities, however, special attention should be paid to the principles of depreciation of such an asset. A shareholder cannot double the depreciation write-offs in two companies, but only in relation to the part in which he was a co-owner in the first of them.