Same methodology applies the to R&D and Start-Up costs.
You will need to enter the assets, R&D and Start-Up costs on the initial S corp return with the same basis, accumulated depreciation and recovery period; essentially a carryover basis.
Make sure you follow any specific instructions on the IRS acceptance letter. Some states require this to be attached to the initial state return.
I recommend attaching detail to the initial S corp return with a brief explanation of what occurred. That way you are covered. However, it is amazing the lack of detail IRS field agents have in the way of detail sometimes.
As long as you have submitted the appropriate forms, timely, and have the S corp acceptance letter you will be fine.
Even if you are audited, nothing to worry about as long as everything was carried over correctly.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
