Section 179 election when S Corporation was a C corporation

Based on Form 1120S instructions, S Corporations shouldn't use Form 4797 to report the sale or other disposition of property if a section 179 expense deduction was previously passed through to any of the corporation's shareholders for that property. Instead, the S Corporation provides the detail for each section 179 asset disposal in the Schedule K-1 statements for Box 17K. The shareholder then reports the disposal on their tax return.
If the section 179 was elected on the property when the S Corporation was a C Corporation, the section 179 for that property wasn't passed through to the shareholder and shouldn't be reported in the Schedule K-1 statements for Box 17K.
Enter
X
in the
Section 179 elected when a C Corporation
field on the Other tab for the asset in the Asset module to indicate the section 179 for that property wasn't passed through to the shareholder. The asset disposal will be reported on the S Corporation return and not reported to the shareholder in the Schedule K-1 statements for Box 17K.
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