Vehicle issues and incorporation date with Change Single Member LLC taxed as sole proprietorship to taxed as S corp

[dramondog]

I have a single member LLC taxed as sole proprietorship for  more than10 years and I elected to be taxed as S corp starting Jan 1, 2023. Nothing else changed with the company (name,  EIN since I have payroll and employees).  

When I file Turbotax Business return for 2023  1120-S , I have several questions --

1) incorporation date -- should I say Jan 1, 2023 (the day S-corp election become effective) or the date on article of incorporation when I set up LLC in 2011? 

2) I used to use a vehicle about 80% for business purpose and I deduct the expense on schedule C through actual expense method. Now this car is already full depreciated,  can I use this car by standard milage method with S corp? I understand this has to go through accountable plan for reimbursement. But I am just wondering if I can change the method for deduction. 

3) For all old assets on my LLC (like office furniture and equipment) , they have been fully deducted or depreciated already.  Do I still need to add them on my asset sheets for S-corp?  If I do need to add them, how do I add the value etc 

Your help is greatly appreciated.

[PatriciaV]

When filing a business tax return, answer all questions for the business in question, in your case, the S-Corp.

1) Use the date of the S-Corp election as the incorporation date. TurboTax will use this date to check other entries. Also, this indicates to the IRS that this is the initial tax return for your new entity.

2) Yes, you can take the standard mileage deduction for the vehicle, which is the best option for a fully depreciated vehicle.

3) You are not required to record fully depreciated assets on your business return. Note that if you sell those assets in the future, the full amount of the sales price will be a taxable gain.

[dramondog]

Thanks a million, Patricia 

[Rick19744]

I would recommend you enter all the assets even though they are fully depreciated; enter the cost and the depreciation.

That way when you do dispose of them, TT will handle everything appropriately with Section 1245 recapture.