In 2016, I had some sole proprietorship work (early 2016) and opened my own LLC - S Corp taxation (mid - late 2016). My tax preparer chose to record an asset which I purchase for my business against my sole proprietorship work (incorrectly) rather than the S Corp - something I discovered two days ago. Since that is actually used by the S Corp, AND I don't do the sole proprietorship work any more, I would like to transfer the asset to my S-Corp. I read in another community response that I can close out the sole proprietorship - not wanting to go there unless absolutely necessary because it seems like more work... However, I felt that I could sell the asset at the depreciated value to my S Corp to allow it to reflect reality. I've been using it as my regular business anyway; this is just to ensure that an error that was made in last years' taxes is corrected in this year's. Is this the right way (acceptable way) of handling this? If the item cost $500 in 2016, and the depreciation was $300, then can I sell the item for $200 to my S Corp and take the depreciation for the $200 as normal on my S Corp 1120S?
Thank you for your attention.
Ashwin
