Bonus Depreciation Financing

Bonus depreciation is the accelerated depreciation provision that allows businesses to deduct a large percentage of qualifying equipment cost in the first year the equipment is placed in service, often substantially more than Section 179 alone would permit. For high-cost CT scanner acquisitions, particularly systems priced above the Section 179 deduction limit, bonus depreciation is the mechanism that extends the first-year deduction into the full purchase price range. Combined with equipment financing, it means you can pay for the scanner over time while capturing most or all of the tax deduction in a single year.

The percentage available under bonus depreciation has changed over time through Congressional action and scheduled IRS phase-downs. The current applicable percentage for your tax year is the number that matters, and that figure should come from your accountant rather than from any marketing material including this page. The structure of the financing, however, is stable: financing that results in ownership for tax purposes preserves your ability to claim bonus depreciation.

Bonus Depreciation and Equipment Financing: The Core Mechanics

Bonus depreciation and equipment financing interact at one critical point: the ownership treatment of the financing structure. Bonus depreciation, like Section 179, requires that you own the equipment for tax purposes in the year you claim the deduction. This means the financing structure matters.

A CT scanner loan, an Equipment Finance Agreement, a capital lease, or a dollar buyout lease all establish ownership for tax purposes. You can place the scanner in service, claim bonus depreciation on your tax return for that year, and continue making monthly payments as planned. The deduction does not require the scanner to be fully paid off; it only requires that you own it and have placed it in service.

An operating lease, where you do not hold ownership, does not support a bonus depreciation claim by the lessee. If capturing bonus depreciation is a priority, the financing structure must establish ownership.

Bonus depreciation and Section 179 interact in a specific way on the tax return. Section 179 is generally applied first, up to the limit and your taxable income ceiling. Bonus depreciation applies to the remaining eligible cost basis after Section 179. For high-cost CT systems above the Section 179 deduction limit, bonus depreciation covers the remainder. Your accountant models this sequence to maximize the first-year deduction.

New Versus Used Equipment: Bonus Depreciation Eligibility

Bonus depreciation eligibility for new equipment is clear: qualifying new property placed in service in the United States is eligible. The rules for used equipment are more nuanced. Used equipment became eligible for bonus depreciation under the Tax Cuts and Jobs Act of 2017, but with conditions: the property must be new to the taxpayer and must not have been previously used by the taxpayer or a related party. A practice buying a pre-owned CT scanner from a hospital it is not affiliated with can claim bonus depreciation on that purchase; a practice buying equipment previously used by its own subsidiary cannot.

This eligibility for used equipment is significant for the CT scanner market, where pre-owned systems represent a substantial portion of transactions. A practice financing a used 64-slice system or a reconditioned 128-slice unit can potentially claim bonus depreciation on the acquisition cost, subject to the applicable percentage and the used-equipment eligibility conditions. Again, confirm with your accountant before relying on this in your acquisition model.

Higher-specification systems, including dual-energy platforms and spectral imaging systems, represent the largest individual deductions available in the CT equipment category. A $900,000 dual-energy system purchased and placed in service in a qualifying year at 80 percent bonus depreciation generates a first-year deduction of $720,000 on a financed acquisition. The interaction with state tax deductions and entity structure adds complexity that requires professional input.

How Practices Use Bonus Depreciation Strategically

The most common strategic application is timing a CT scanner acquisition to coincide with a high-income year. A radiology group that had a particularly strong year in professional fee revenue, or an imaging center that sold a building or recognized a large one-time gain, can use a CT scanner acquisition financed in that same year to offset a significant portion of the taxable event. The scanner generates revenue going forward, the monthly financing payments are manageable, and the first-year tax deduction reduces the immediate tax liability associated with the income event.

This kind of acquisition timing is not unusual in the medical imaging market. Equipment sellers often see a surge in Q4 purchasing that is partially driven by year-end tax planning. Lenders who work regularly with imaging practices understand this pattern and are set up to close deals quickly in November and December for practices with a year-end placement deadline.

Financing Terms Compatible with Bonus Depreciation

Any ownership-structure financing we offer is compatible with bonus depreciation elections. Loans, EFAs, capital leases, and dollar buyout leases all preserve the election. The financing term you choose, from 36 to 72 months, does not affect eligibility. The monthly payment is what it is based on the amount financed and the term; the tax deduction is a separate event that happens at placement of service.

For practices that want to verify the specific structure before signing, we provide documentation that clearly identifies the ownership treatment of the financing. This makes it straightforward for your accountant to confirm eligibility and prepare the appropriate tax return elections.

Structure Your CT Scanner Financing for Maximum Tax Benefit

We finance CT scanners under ownership structures that preserve your bonus depreciation election. Tell us the equipment and your target placement date, and we will align the funding timeline to meet your year-end needs. Minimum $50,000.