christiwoods24
Level 1
05-17-2020
10:31 AM
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I understand why this occurs for S-Corp assets that had 179 that flowed through to shareholders. However, why would this occur for assets that were in a prior C-Corporation that was converted to an S-Corp at a later date? 179 was NOT flowed through based on in-service dates compared to S-Corp Conversion Dates.
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christiwoods24
Level 1
05-17-2020
10:49 AM
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Answered my own question - FMV and adjusted basis at the time of conversion must be entered in order for the asset to be reported on 4797 as a prior C-Corp asset subject to built-in gains.
🙂
