1120S Asset disposal question

[jblynch]

For TY22 extended, have an 1120S where the assets were effectively all disposed of in 2022 without there being any proceeds.  While the specifics are still being worked by the taxpaying couple (50% owners each), I've already done a proforma of the return as it stands with information given and am a bit confused.  All of the assets have been fully depreciated-some with both section 179 and others just with normal depreciation.  The K-1's reflect line 17 Box K with a statement.  The statement shows only the assets which have had section 179 depreciation taken.  In a situation like this where there's effectively no gain or loss on disposal, would I just be picking up the 179 section as recapture or the full amount for all assets-whether shown on the statement or not.  I had intended to attach an Excel file to detail this but it does not look like I can.  Instead, I have pasted the data below and hope it doesn't get completely mangled.  Thank you in advance for any comments!

Form 4562
Depreciation and Amortization Report                                       2022
Tax Year 2022
G Keep for your records
Page 1 of 1
Name as Shown on Return	Identifying Number
QuickZoom here to enter assets
QuickZoom here to set MACRS convention for assets acquired in 2022
Activity:
Form 1120S  - Line 21
Asset Description	Code *	Date In Service	Cost (Net of Land)	Land	Bus Use %	Section 179	Special Depreciation Allowance	Depreciable Basis	Life	Method/ Convention	Prior Depreciation	Current Depreciation
DEPRECIATION
TRACTOR	S	06/04/04	16,244		100.00			16,244	3.00	SL/HY	16,244	0
COMPUTER	S	01/31/05	1,034		100.00			1,034	5.00	SL/HY	1,034	0
SHED	S	10/22/05	14,249		100.00			14,249	7.00	SL/HY	14,249	0
DUCT BLASTER	S	12/22/05	1,900		100.00			1,900	5.00	SL/HY	1,900	0
CONCRETE PUMPING	S	02/02/06	3,710		100.00	3,710		0	5.00	SL/HY		0
SHED IMPROVEMENTS	S	01/01/09	8,751		100.00	4,376		4,375	7.00	SL/HY	4,375	0
2009 HUMMER	SL	01/01/10	42,215		100.00	21,108		21,107	5.00	SL/HY	21,107	0
EQUIPMENT	S	07/01/12	2,685		100.00	2,685		0	3.00	200DB/HY	0	0
SUBTOTAL PRIOR YEAR			90,788	0		31,879	0	58,909			58,909	0
TOTALS			90,788	0		31,879	0	58,909			58,909	0
AMORTIZATION
ORGANIZATIONAL COSTS	S	01/11/02	135		100.00			135	5.00		135	0
SUBTOTAL PRIOR YEAR			135			0	0	135			135	0
TOTALS			135			0	0	135			135	0
tp 1 50%						15940					29455
												68
tp 2 50%						15,939					29,454
											67
* Code:
S = Sold, A = Auto, L = Listed, V = Vine with SDA in Year Planted/Grafted, C = COGS
Name as Shown on Return	Identifying No.
Shareholder’s Disposition Report for all Assets with Section 179 Expense Taken
Shareholder’s Name                                                                                                     Identifying No.
(a) Description	(b) Date acquired	(d) Gross sales price (e) Qualified Real Prop. With s 179	(f) Cost or basis, plus improve- ments and expense of sale	(g) Depreciation allowed or allowable	(h) Amount of section 179 expense deduction taken	(i) Tax Year section 179 expense deduction taken
Check this Box if from a Casualty or theft	(c) Date sold
AMT Depreciation
CONCRETE PUMPING	02/02/06	0. 0. 0. 0.	1,855. 4,375. 21,107. 1,342.	0.        0.    2,187.    2,187.   10,553.   10,553.        0.        0.	1,855. 2,188. 10,554. 1,342.	2006 2009 2010 2012
			12/31/22
SHED IMPROVEMENTS	01/01/09
			12/31/22
2009 HUMMER	01/01/10
			12/31/22
EQUIPMENT	07/01/12
			12/31/22
SPSW9701.SCR  04/13/21

[sjrcpa · Accepted solution]

Since the original 179 deduction passed through as a separate K-1 Line item, the disposition of assets where Section 179 was claimed also passes through separately- even if there is no gain or loss.

[jblynch]

Ex-AllStar

Thanks for responding-I was getting that sense from research but wanted to make sure I wouldn't be understating the recapture.  Appreciated!