Can I still take bonus dep in 2018 on 1120S Corp tax return in addition to taking credit of 7500 on K1or its double dipping?

[ygusani]

S corp owner buys a electric plug in car using company's fund for 100% business use. I took a credit of 7,500 on K-1 which will flow thru the personal return. If I took a credit already then do I have to reduce the basis for the depreciation? By the way, ProSeries doesn't support the form 8936. 

[TaxGuyBill · Accepted solution]

Yes, the credit reduces Basis.

Yes, you can take Bonus depreciation on the rest of the cost (assuming it otherwise qualifies for Bonus depreciation).

ProSeries supports 8936 for Form 1040.  Are you saying it isn't in the S-corporation program?

[ygusani]

Thank you very much. That is what I thought so. You are correct! Pro series 1040 supports it but I couldn't find in 1120S and when I called Proseries. they told me that program doesn't support the form 8936.

[itonewbie]

See §30D(f)(1) and (2).  You can't have the cake and eat that too.

[ygusani]

Thanks for your answer. I would like to review the section indicated. So far my research indicates I should be able to take credit and bonus dep., but trying to solidify my research

[qbteachmt]

The "owner" either bought this or the Corporation bought this. Using Corporate Funds doesn't make it a Corporate vehicle, by definition. Intending to use a personal vehicle 100% for Business doesn't make it a Corporate vehicle, either. And if it is not owned by the corporation, it isn't part of the 1120S; the Shareholder turns in Mileage log reports to be reimbursed at IRS standard mileage rate.