I am an Enrolled Agent. What is an S Corp? Any Section 179 carryover is a personal item and will have no impact on the S corporation. What can the IRS do if I don't pay my taxes- what is the collections process? Proposed basis calculation: $A + $B + ($E). This article provides a brief overview of the financial benefits of operating as an S-corporation. The inside basis of the asset is not increased. Although the tax implications of each option can be complicated, the benefits can often outweigh any costs. https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis, https://www.law.cornell.edu/cfr/text/26/1.357-2">https://www.law.cornell.edu/cfr/text/26/1.357-2