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Posted by xtrakmo on April 12, 2007, 12:25 am
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I established a general partnership in 2006 that had a loss
for the year. The section 179 deduction was taken for some
property, but the entire deduction had to be carried over
due to income limitations.
In early 2007, the partnership was incorporated into an
S-corp and the section 179 property was exchanged (at market
value) into the S-Corp for equity along with the remaining
assets of the partnership. How will the section 179
property be accounted for in the termination of the
partnership? What is the tax basis of the property?
I want to verify that what my accountant is telling me is
accurate.
Also, the value of deductions made as 59(e)(2) expenditures
were transferred to the s-corporation as "goodwill". Is
this correct? Is there a better way to do this? Why was
this way suggested?
Thank you,
Nick Wing
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