In mid-2007, we incorporated our general partnership, and all assets and liabilities were assumed by the corporation (with S corporation election). How do we account for our section 179 carryover from the partnership 2006 return? Many thanks. Xavier
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Both partnerships & S corps are flow thru entities which do not claim sec 179 deductions. They are passed thru to the partners & shareholders who deduct it, subject to their own limitations. ___________________________________
-----> real address on hobokeni or hobokenx
If the 179 gross income test is failed at the partnership level, there is no flow through to the partners. Instead, there is a 179 carry over at the partnership level.
Regards, Bill
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