Transfer from S corp to S corp

[cpabsd]

Client had real estate in S corporation which was transferred to a trust then subsequently transferred to a new S corp. Client owned 100% of both entities at time of transfer. Per the attorney, the trust is a disregarded entitly for tax purposes and was only around for a few days. The attorney said the transaction was a non taxable transfer under Code section 355. I am fully aware of code section 351 tranfers and the requirement to attach info to tax returns. Is there any such requirement under section 355? Also, in order to remove the real estate off the books of corporation 1, I will credit building and debit accumulated depreciation. Does the remaining debit go to distribution? That does not seem correct but I am unsure of where else to put it.