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My client is an excavator. He sole income has been reported through a K-1. He purchased the business and continues to use the assets. Do I use prior depreciation from K-1 supplemental expenses and carryover to Schedule C?
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Please provide more detail. Income through K-1 indicates he's either a member of an LLC or shareholder of S-Corp. Why would there be a Schedule C? Prior depreciation is depreciation deducted prior tax years why would you use that on current tax return.
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Yes, he is a member of an LLC. Then he bought the business. He operates as a sole proprietor henceforth.
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Did he buy the assets, take on the liabilities? Or, did he buy out the Partners, so that the LLC now has only the one partner left?
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He actually owned the assets personally and use them for the partnership business. Basically he just bought the name...they dissolved the partnership
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You do realize this makes no sense: "He actually owned the assets personally and use them for the partnership business."
Because you stated the business was taking depreciation as the "owner." You cannot both Own them personally and the business owned them previously, at the same time.
"Basically he just bought the name...they dissolved the partnership"
You don't seem to know exactly what happened.
"Level Up" is a gaming function, not a real life function.
