I intend to use power tools and equipment already available at hand for rehabbing. But I needed to make sure that I am assigning and structuring the proper balance sheet with the proper organization. I currently have a potentially C-corp structured organization having missed the 75 or 90 day clause for conversion from C-corp to S-corp. My question to CPAs and valuators here is, I have hundreds of power tools, semi-heavy equipment, and a converted truck to a van. I intend to use these equipment for rehabbing. Can I assign these equipment, subject to valuation for FMV, treated as non-current asset in a balance sheet to my C-corp and then be converted as common shares stock of my C-corp? If so, how is this conversion to take place, and is it possible at all? The other question is that these non-current assets (equipment) would have depreciation value over time. A straight line depreciation seemed to give more depreciated value compared to the double line method. Under which circumstance will either be straight line or double line method be more favorable? Also, CA CPA/counsel with experience in the CA RE and construction industry may be able provide their opinions.
