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Tax Law (Questions About Taxes)/car depreciation limits for S-Corp


Assuming 100% business use, can a company car (S-Corp) be 100% depreciated in 5 years?  Or must it follow the following depreciation chart:

Year 1 max depreciation amount: $11,160
Year 2 max depreciation amount: $5,100
Year 3 max depreciation amount:: $3,050
Year 4(+) max depreciation amount: $1,875

For instance, if an S-Corp purchases a $40,000 car (not an SUV) in 2012, can the $40k purchase price of the car be written-off via depreciation in 5 years using the straight-line method (i.e. $10k per year)?  Or would it take 14 years to fully depreciate (using the above depreciation chart)?


Thanks for your question.

You must use the depreciation amounts specified in Sec 280F, which you have cited.  However, the bonus depreciation is slated to expire at the end of 2012, so the first year limit would be even less.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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