This item addresses how S corporations and partnerships that have a Sec. 179 recapture event should report the event to their owners.Businesses that buy new equipment can take the Section 179 Deduction on their taxes. The Internal Revenue Service (IRS) manages this program. When you dispose of an asset with a section 179 expense deduction, the disposition isn't included on Form 4684, 4797, 6252, or 8824. Section 179 depreciation assumes a certain period for that type of fixed asset. If you sold or exchanged a qualified community asset acquired after 2001 and before 2010, you may be able to exclude the "qualified capital gain. Section 179 allows eligible businesses to deduct the full purchase price of qualifying equipment in the year it was put into service. Section 179 Deduction—For property placed in service after. Will fill out federal and state forms for those who qualify.