Discussion:C Corp Sect. 179 Carryover to S Corp
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Discussion Forum Index --> Tax Questions --> C Corp Sect. 179 Carryover to S Corp
| 16 November 2006 | |
| Hello everyone, new to the forums and a little help is needed.
We've got a new client and in 2004 it was a C-Corp with a Net Loss and carryover Section 179 depr. The old CPA decided to filed an S-Corp election for the 2005 tax year. My question is, can the C-Corp's Sect 179 carryover be utilized by the "new" S-corp elected company? And is there any literature that refers to this directly. We know that if this cannot be done that we can amend 2004 and remove the 179 depr, change to regular depr and continue on into the S-Corp. Any help would be appreciated. Thanks kb | |
| 17 November 2006 | |
| An S corporation may not utilize a Sec. 179 c/o from a "C" year. Sec. 1371(b)(1). | |
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