"James Lewis" <jmpj[at]verizon.net> wrote

- quote -

Don't have to cite anything. "The invoice was issued in the
name of the S-Corp" means that the "S" corp OWNS the asset
and they are the only one who can depreciate it and the only
ones who can take Section 179.

Now, if there is a legal document that shows the "sale" of a
partial interest in the machine, then you have half a chance
for the C corp to claim Section 179 and/or regular
depreciation.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

A C-corp and an S-Corp jointly bought new computer hardware
for catastrophe recovery purposes as required by mutual
clients costing $200,000 which is the only assets purchased
by either company. Common shareholders own 67% of the C-Corp
and 100% of the S-Corp. The invoice was issued in the name
of the S-Corp to avoid the extra paperwork involved in
financing the purchase and the C-corp pays the S-corp half
the monthly payment.

Can both companies take a $100k Section 179 deduction? If
not, please cite the code/reg/case/etc. prohibiting such a
position.

Mike

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >