Moving from a sole proprietor to a C corp tax free is accomplished under the provisions of Section 351.

Section 179 is allowed for new and used and just to be clear here, while this may appear to be used property for the C corp, Section 179(d)(2) provides that property purchased from a related party is not eligible property.

So just covering all bases here that even if the C corp "purchased" the property, it is not eligible as noted above.