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Transfer depreciable assets from one company to another.

pacoford
Level 4

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

You're welcome.

The more I know, the more I don't know.

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7 Comments 7
sjrcpa
Level 15

Is the new company also a Schedule C?

The more I know, the more I don't know.
pacoford
Level 4

Yes it is

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sjrcpa
Level 15

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

The more I know, the more I don't know.
pacoford
Level 4

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

I'd keep the original date

The more I know, the more I don't know.
pacoford
Level 4

You're awesome! Thank you so much!

sjrcpa
Level 15

You're welcome.

The more I know, the more I don't know.