Bonus depreciation is the automatic acceleration mechanism in the tax code, no dollar cap, no election form, no business income limit. Under the Tax Cuts and Jobs Act of 2017, qualifying equipment placed in service from 2018 through 2022 was eligible for a 100 percent first-year deduction. The phase-down started in 2023: 80 percent for 2023, 60 percent for 2024, 40 percent for 2025, and 20 percent for 2026, before the provision sunsets entirely for property placed in service after 2026 under current law. For practices purchasing ultrasound equipment in the next two years, bonus depreciation still provides meaningful acceleration. Pairing it with equipment financing lets you capture the deduction while preserving cash for operations.
Financing Types
Bonus Depreciation Financing
Finance new or used ultrasound equipment and apply bonus depreciation to accelerate your deductions. Understand the current phase-down rules before you buy.
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Questions About Bonus Depreciation Financing
Review the common timing, documentation, and equipment questions before sending the quote.
What is the bonus depreciation percentage for equipment placed in service in 2024?
For qualified property placed in service in 2024, bonus depreciation is 60 percent of the eligible cost. The remaining 40 percent is depreciated under the standard MACRS schedule for the asset class. This rate steps down to 40 percent in 2025 and 20 percent in 2026 under current law.
Can bonus depreciation create a net operating loss?
Yes, unlike Section 179, bonus depreciation is not limited to business income. If the bonus depreciation deduction exceeds taxable income, it creates a net operating loss that can generally be carried forward to offset future income. This makes it a useful tool for practices in a loss year or investing heavily.
Does financing the equipment disqualify it from bonus depreciation?
No. Bonus depreciation is available regardless of how the equipment is financed, as long as it is placed in service during the qualifying tax year. Cash purchase, loan, or $1 buyout lease all qualify. Most operating leases do not, because the lessee is not treated as the owner for tax purposes.
Can I use both Section 179 and bonus depreciation on the same purchase?
Yes, and it is common practice. Section 179 is applied first, up to its annual limit. Bonus depreciation then applies to any remaining basis in the equipment. Your accountant will determine the optimal sequencing based on your income position and deduction limits.
Does used ultrasound equipment qualify for bonus depreciation?
Yes, as long as it is used property that is new to the taxpayer, meaning you have not previously claimed depreciation on that specific asset. Used ultrasound purchased from a dealer or secondary market seller qualifies under the expanded rules established by the Tax Cuts and Jobs Act of 2017.
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