Answers · S corporations
Bonus Depreciation for S Corporations
Under current law, qualifying property acquired after Jan. 19, 2025 generally may qualify for 100% special depreciation allowance, subject to eligibility rules and elections. Form 4562 instructions and current IRS guidance should be checked for the placed-in-service year.
How it works
The rule, and what it turns on.
Bonus depreciation is computed at entity level and generally reduces relevant S corporation income; eligibility and elections must be checked.
Example
$100,000 qualifying equipment placed in service in 2026 can potentially receive 100% federal bonus under current law.
Common mistakes
What we see go wrong, and what we do instead.
- Assuming every building/improvement qualifies.
- Ignoring state conformity.
A better approach
- Compare bonus with Section 179 and regular MACRS.
Authority
Where this comes from, so you can check it.
IRC §§167, 168 and 179; Treas. Reg. §1.167(a)-1; IRS Publication 946; Form 4562 and instructions.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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