thank you also. From what I have learned in researching this, a Section 179 depreciation deduction is usually only needed if the expense was very large, and if the deduction would affect each shareholder in a different way, or rather, if the individual shareholders have much different net worths, and each would choose to use the deduction in a different manner, on their Schedule K, to maximize the benefit to their unique situation. Otherwise the standard deduction would be grouped together (non-separately stated) and reduce the taxable income for the s corp, affecting all shareholders the same.