Can I take bonus depreciation on S corp return for assets that were already in use under schedule C in prior years?

[jaredob11]

Transferred assets from SMLLC that reported on schedule C in 2017.  S corp election on 1/1/18(1 shareholder).

[MichaelL1 · Accepted solution]

No you cannot take bonus depreciation on the assets that were on the Sch C and now on the S-Corp.

The definition of property eligible for 100 percent bonus depreciation was expanded to include used qualified property acquired and placed in service after Sept. 27, 2017, if all the following factors apply:

• The taxpayer or its predecessor didn’t use the property at any time before acquiring it.
• The taxpayer didn’t acquire the property from a related party.
• The taxpayer didn’t acquire the property from a component member of a controlled group of corporations.
• The taxpayer’s basis of the used property is not figured in whole or in part by reference to the adjusted basis of the property in the hands of the seller or transferor.
• The taxpayer’s basis of the used property is not figured under the provision for deciding basis of property acquired from a decedent.
• Also, the cost of the used property eligible for bonus depreciation doesn’t include the basis of property determined by reference to the basis of other property held at any time by the taxpayer (for example, in a like-kind exchange or involuntary conversion).