This item addresses how S corporations and partnerships that have a Sec. 179 recapture event should report the event to their owners.A major difference between partnerships and S corporations involves the treatment of distributions of appreciated property. 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. Use Part III of Form 4797 to figure the amount of ordinary income recapture. The recapture amount is included on line 31 (and line 13) of Form 4797. Section 179 allows eligible businesses to deduct the full purchase price of qualifying equipment in the year it was put into service. Eligible Section 179 deductions include physical items that are purchased as business assets, like machinery, software, and vehicles.