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pacoford
Level 5
October 8, 2022

Transfer depreciable assets from one company to another.

  • October 8, 2022
  • 1 reply
  • 15 views

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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    1 reply

    sjrcpa
    Level 15
    October 8, 2022

    Is the new company also a Schedule C?

    The more I know the more I don’t know.
    pacoford
    pacofordAuthor
    Level 5
    October 9, 2022

    Yes it is

    sjrcpa
    Level 15
    October 9, 2022

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

    The more I know the more I don’t know.