I also have an s corp dissolution with 179 disposition of property
. I read the questions below submitted 8 yrs ago. Have a question regarding your answer to #4 followed by a question of my own regarding 179 recovery period.
question & answer for #4 below: On Form
4797, Part III, Line 22 - depreciation
allowed or allowable. If ONLY sec 179 expense deductions
were taken, leave this line blank? Or am I supposed to calculate the amounts of depreciation that would have been allowed were it not for taking the sec 179 expense deductions?
You will include Sec 179 expense claimed as part of depreciation allowed or allowable on Line 22.
My question: BUT the IRS
1120S instructions say:"The shareholder
's pro rata share of the depreciation allowed or allowable, determined as described in the instructions for Form 4797, line 22, but excluding the section 179 deduction
." 1) Could you clarify?
Also 2) If I took a 179 deduction for property with a recovery period of 7 years that was not met - example chain saw 179 deduction in 2012 with 7 yr depreciation recovery period - do I need to reclaim some of that deduction on my final 1120S for 2015? If so - do I do this on form 4562
as part of 1120S or as shareholder on 1040? Thanks