The issue is not whether bonus depreciation can be taken.  If the S Corp shows a loss due to the bonus depreciation, can the shareholder take this loss against his returns?  I thought the rule is you have to have basis.  

One individual owns 2 companies.  One company  (B) only  exists to rent the equipment to his other company (A) .  It has no other function.  Apparently his lawyer advised him to create a separate company for the purpose of managing the financing of the equipment and leasing it out to his other company A (which is a medical services company, offering orthopaedic services).

Can he net the loss from company B (generated from bonus depre) against income from his medical services company (A)?