Partnership Property

Question 1

Partnership Capital

Answer 1

Partnership capital is the property or money contributed by each partner for the purpose of carrying on the partnership’s business.

Question 2

Partnership Property

Answer 2

Partnership property, in its broadest sense, is everything the partnership owns, including both capital and property subsequently acquired in partnership transactions.

Question 3

Property Deemed to Be Partnership Property

Answer 3

Titled property is partnership property if it is acquired in the partnership’s name or in a partner’s name where it is apparent from the document that they are acting for a partnership (for example, it mentions a partnership or says they are a partner).

Question 4

Property Presumed to Be Partnership Property

Answer 4

Under the R.U.P.A., property is rebuttably presumed to be partnership property if it was purchased with partnership funds, regardless of in whose name title is held. “Partnership funds” includes not only the partnership’s cash, but also the partnership’s credit.

Question 5

Property Presumed to Be Partner’s Separate Property

Answer 5

Under the R.U.P.A., property is rebuttably presumed to be a partner’s property if (1) it’s held in the name of one or more partners, (2) the instrument transferring title gives no sign that they’re acting for a partnership, and (3) partnership funds were not used to acquire the property.

Question 6

Partner’s Rights

Answer 6

A partner is not a co-owner of partnership property and has no interest in partnership property which can be transferred. (The partnership is an entity; the partnership itself, not the partners, owns its property.) A partner can simply use partnership property for
partnership purposes.