When it comes to disposing of an asset that section 179 was taken on:
1) I have to add it to the M-1 as a book-to-adjustment to tie out book income for the amount of the gain relating to the disposal
2) There is a 179 disposal worksheet. This shows the cost, depreciation taken, and calculated gain
3) I need help figuring out how this ties into the K-1 amount. Do I add a 4797 on the shareholder's return and add this amount to the Gain from Section 179 Asset Disposal line on the shareholder basis schedule?
In this scenario, a 70K vehicle had 25K of 179 and 45K of bonus. They received 54K on trade so I need the 54K to show up on the 1040.