pacoford
Level 5
‎10-08-2022 05:59 PM

My client sold his business (schedule c) and transferred assets that weren't fully depreciated to a new company. Is taxpayer required to start over with the recovery period or is it allowable to include prior depreciation and pick up where we left off with recovery period? 

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sjrcpa
Level 15
‎10-08-2022 06:44 PM

Is the new company also a Schedule C?


The more I know the more I don’t know.
pacoford
Level 5
‎10-08-2022 07:08 PM

Yes it is

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sjrcpa
Level 15
‎10-08-2022 08:45 PM

Then continue as before. Use original cost, method, accumulated depreciation, etc.


The more I know the more I don’t know.
pacoford
Level 5
‎10-08-2022 09:59 PM

Do I change date for item placed in service or do I use the original date even though it was not used for the new business upon purchase?

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sjrcpa
Level 15
‎10-09-2022 10:57 AM

I'd keep the original date


The more I know the more I don’t know.
pacoford
Level 5
‎10-09-2022 11:42 AM

You're awesome! Thank you so much!

sjrcpa
Level 15
‎10-09-2022 02:36 PM

You're welcome.


The more I know the more I don’t know.

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