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Old 03-04-2014, 08:33 PM
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Join Date: Mar 2014
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Please Help with Depreciation 4797 & 1120S


I was hoping someone could please provide a bit of guidance.

I started an S Corporation to manage a rental condominium.
Date Acquired: 6/25/08 $119,000
Dated Sold: 7/31/13 $142,000

Repairs before sale Aprox $8,500
Which I assume will be listed in form 8825

From 2012 1120S Schedule L
10a Building Other Depreciable Assests Beginning of Yr $110,000 End of Yr $110,000
b Less Accum depreciation Beginning of Yr $7,456 End of Yr $11,079

After selling the property, I would like to close the Corp. From what I’ve gathered, I need to complete a 4797 form. I do not understand the section179 or depreciation thus I included the above mentioned information. However the property was owned for more than 1 year so I began in Part 3 of form 4797
Line 20 This is the complete sale price $142,000 correct?
Line 21 This does not pertain as there was no oil recovery or disabled credit. Correct?
Line 22 Depreciation Does this pertain? If so how do I calculate?

In short I do not know what “section” the property is considered.
I'm assuming it is section 1250 because it is residential rental property, not low-income held for more than one year

Line 26 a-g (I need help with this whole section)
How can I determine if straight line depreciation was used? It seems as though there was a 3.3% each year on the 1120s Schedule L. (Info mentioned above in Background)

Further can someone also please clarify how form 4797 will be reflected onto form 8825 and ultimately 1120s?

Sorry for the terribly remedial questions but I can’t seem to fully understand recapturing depreciation, section 179, or much of any of this for that matter.

Thanks so very much in advance for your help.

Last edited by yoshimi28 : 03-04-2014 at 10:05 PM. Reason: wanted to add info

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