Answers · S corporations
Section 179 for S Corporations
An S corporation can elect Section 179 on qualifying property, but the deduction is separately stated and limited at both entity and shareholder levels.
How it works
The rule, and what it turns on.
Shareholder basis and business-income limits can defer the deduction.
Example
$50,000 entity Section 179 with two 50% shareholders can allocate $25,000 each, subject to their limitations.
Common mistakes
What we see go wrong, and what we do instead.
- Deducting it twice.
- Ignoring shareholder limits.
A better approach
- Model Section 179 alongside bonus/MACRS before filing.
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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