From Sole Prop to S-Corp Depreciation

[kpangelinan]

A sole proprietor who's been depreciating assets in his business starts an S-corp. How does the depreciation work in reference to the S-corp depreciating these assets now and he is no longer operating as a sole proprietor? Does he as an individual have to, in effect, sell the equipment to the S-corp? What numbers does the S-corp use as a cost basis?

[Bees Knees]

Your answer is found on page 25-5 in the Deluxe edition and page SB13-13 in the Small Business edition of TTB. Both books have a section entitled "Contributed Property Depreciation."