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Are there limits on the types of assets that may be

Are there limits on...

Are there limits on the types of assets that may be capitalized in a new S corporation, ie. fixed assets, inventory, lease improvements, that were paid for by a sister S Corp, and recorded on the sisters books as a distribution in kind?

Accountant's Assistant: The expert will know how to help. Is there anything else important you think the expert should know?

I'm trying to avoid due to/from accounts in S corps. with the same ownership.

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8/11/2017
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,829
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Hi from Just Answer. I'mCustomer and can assist. But why you are doing this should dictate how.

For example, is sister s liquidating? Spinning off a division or operation? And I assume 100% common ownership.

PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4,829
Experience: 35 years tax experience, including four years at a Big 4 firm.
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Customer reply replied 6 months ago
No liquidation. A craft distillery kit distribution company, shipped fixed assets, inventory to like owned, but new S Corp. The distribution company also paid workers to do lease improvement work on the new companies bar/restaurant/distillery.
Customer reply replied 6 months ago
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