@JKCPA wrote:
For example, (S-Corp) if an asset is $100,000..........
S corporation = You need guidance from a local tax professional and/or a tax advisor.
Generally, the Section 179 deduction is limited to income on your 1120-S whereas bonus depreciation (the special depreciation allowance) is not so limited.
As a result, taking bonus depreciation can result in your K-1 (1120-S) showing an ordinary loss on Line 1 of your K-1 (which will serve to reduce your income on your 1040).
The Section 179 deduction is passed directly through to you (and any other shareholders) on Line 11 of your K-1 (which will also reduce your income on your 1040, but is limited at the corporate level).
Bottom line here is seek guidance from a tax professional.
