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These videos have explained the CPA exam topics better than any other resource!

Thanks! Passed all of my EA tests on 1st try. Watched a lot of your videos and they were a great help. Much appreciated!

I have a question. My son has a business that started in 2021 as a SM LLC. In 2024, he converted to an S-Corp for tax purposes (he is the sole owner still). My question is: how do I calculate the starting basis for him for 2024? He has made money each of the 3 years and has no debt. He also started his business with some personal equipment that is still in use. Does the basis start at $0 in 2024? or do I account for what he contributed and made in the previous 3 years? thank you.

Need to create an excel schedule for this. Build the ordering rules into the calc.

If S corp takes a Section 179 deduction and passes thru to owner, this 179 deduction will reduce owner basis, so if the asset is sold later would the recapture gain then increase the owner basis? Seems like it should as basis was reduced by the 179 deduction?