Hello wubeibei
Assuming you filed Form 2553 this year, and have received a letter from the IRS accepting your S-Corp election, then for the 2024 tax year, you will be treated as an S-Corp. Since you applied for S-Corp status this year (2024), your new entity status will not impact your 2023 tax return, being that, you filed as a sole-proprietor based on what you have mentioned. Section 179 recapture will apply if you stopped using the business assets before the end of their useful life for whatever reason (assets were sold, destroyed, or stolen) or the use of these assets for business purposes dropped below 50%. If either of these criteria do not apply, then there is no Sec 179 depreciation recapture, since you are just transfering the assets to the S-Corp, hence, meaning these assets are still being used for business purposes.
I hope this helps
