Transfer depreciable assets from one company to another.

[pacoford]

My client sold his business (schedule c) and transferred assets that weren't fully depreciated to a new company. Is taxpayer required to start over with the recovery period or is it allowable to include prior depreciation and pick up where we left off with recovery period? 

[sjrcpa]

Is the new company also a Schedule C?

[pacoford]

Yes it is

[sjrcpa]

Then continue as before. Use original cost, method, accumulated depreciation, etc.

[pacoford]

Do I change date for item placed in service or do I use the original date even though it was not used for the new business upon purchase?

[sjrcpa]

I'd keep the original date

[pacoford]

You're awesome! Thank you so much!

[sjrcpa · Accepted solution]

You're welcome.