Hello,
I have a question about a capital contribution of a piece of equipment to a new 2 member LLC. (a transfer)
I believe I have figured out one thing. Please tell me if I'm right.
That repairs and upgrades done to the 2nd hand piece of equipment while still personal property will add to it's value for the transfer contribution. I assume this would be at Cost not FMV (This piece of equipment has never been used for personal use and was bought as the main piece of equipment to earn revenue in this business)
What I'm less sure about is if, after transferred, would this fixed asset be eligible for section 179? Or does the fact that it is a capital contribution and not a business purchase disqualify it? This is an old piece of equipment thats cost (at most around $20,000 after repairs and upgrades) that I think falls below the allowed threshold for sect 179, and would be taken all in one year if eligible. Our company is seasonal, so I understand that since the company was formed in the last quarter of 2023, that our income may not be enough to take it all, and it might be carried over.
Thank you so much ahead of time for clarification!
