Placed-in-service deadline
Section 179 · Tax year 2026

Deduct the whole system the year you put it in service.

Section 179 and 100% bonus depreciation let a practice write off qualifying capital equipment in the year it goes into service — instead of spreading it across five or more. Estimate what a C-arm, ultrasound, CT, or DR room actually costs you after tax.

2026 Section 179 limit $2,560,000 Per business, per tax year
Bonus depreciation 100% On basis above the 179 limit
In service by Dec 31, 2026 Delivered, installed, and operational
Estimator

What your equipment costs after the deduction

Pick a category to start inside a realistic price band, then type the exact number from your quote.

1  /  Equipment type
2  /  Purchase price Total equipment cost
$
3  /  Your tax situation

Total purchases across the year drive the Section 179 phase-out, which starts at $4,090,000.

Time left to place in service days

Order dates work backward from the install date — delivery, room prep, and applications training all sit ahead of December 31. Ask us what's still achievable for your modality.

First-year federal treatment
Equipment cost $95,000
Section 179 deductionUp to $2,560,000 $95,000
Bonus depreciation100% of remaining basis $0
Standard first-year depreciation5-year MACRS on what's left $0
Total first-year deduction $95,000
Estimated tax savingsAt a 35% effective rate $33,250
Net cost after tax savings $61,750 Effectively 65% of sticker price.
Section 179 Bonus depreciation Standard depreciation
Compare it to financing — what year one actually looks like in cash Open
Term
Rate
Down payment
Estimated monthly payment
Down payment plus 12 monthly payments
First-year tax savings on the full purchase

Payment estimate only. Actual terms depend on credit, structure, and lender — and a lease may be treated differently than a loan for deduction purposes. We'll walk through the real numbers with you.

How the timing works

The deduction follows the install date, not the invoice date

STEP 01

Purchase or finance

Buy outright, finance, or lease under a qualifying structure. Financed equipment can still be deducted in full — you don't have to pay cash to take the deduction.

STEP 02

Place it in service by Dec 31

The system has to be delivered, installed, and ready for patient use before year end. Room prep, power, shielding, and applications training all sit on this critical path.

STEP 03

Elect the deduction at filing

Your CPA elects Section 179 on Form 4562 and applies bonus depreciation to any remaining basis. The write-off lands on the 2026 return.

Generally qualifies

Capital equipment a practice puts to work

  • Mobile and fixed C-arms, including refurbished systems new to your practice
  • Ultrasound systems, carts, and probes
  • CT, MRI, and nuclear medicine systems
  • Digital radiography rooms, portables, and DR retrofit panels
  • Bone densitometry and other diagnostic systems
  • Surgical tables, lights, booms, and sterilization equipment
  • Patient monitors, injectors, and imaging accessories
  • PACS workstations, servers, and off-the-shelf imaging software
Generally does not

Where the deduction stops

  • The building itself, and most structural improvements to it
  • Land and land improvements such as parking and landscaping
  • Equipment used 50% or less for business
  • Equipment acquired from a related party
  • Inventory you hold for resale
  • Equipment delivered in 2026 but not operational until 2027

Used and refurbished equipment does qualify, as long as it is new to your practice. That matters when a certified pre-owned C-arm delivers the same deduction as a new one at a fraction of the price.

Questions we get every Q4

Before you talk to your CPA

If bonus depreciation is 100%, why does Section 179 still matter?

Two reasons. First, many states cap or disallow bonus depreciation but conform to Section 179 — so the split between the two changes your state return even when the federal total is identical. Second, Section 179 is elective line by line, which gives your CPA control over how much deduction lands in which year. Bonus depreciation applies to whole asset classes unless you elect out.

Can I deduct the full amount if I finance the equipment?

Generally yes. The deduction is tied to placing the asset in service, not to how much cash you paid. That is why a year-end purchase financed at $0 down can produce a first-year deduction far larger than the payments you make in that year. A true operating lease is treated differently — those payments are typically deducted as rent instead.

What if my practice's taxable income is lower than the deduction?

Section 179 can't exceed your net taxable business income; the unused portion carries forward to future years. Bonus depreciation has no such limit and can create or increase a net operating loss. This is the single biggest reason the estimate above can overstate your first-year benefit — run the real numbers with your CPA.

Does refurbished equipment qualify?

Yes. The requirement is that the equipment is new to you, not new from the factory. A certified pre-owned C-arm or a refurbished ultrasound system is eligible on the same terms as new equipment, which is what makes the after-tax math on pre-owned imaging so favorable.

How late in the year can I still order?

It depends on the modality. A portable ultrasound can ship and be operational in days. A mobile C-arm typically needs a few weeks for delivery and applications training. A CT or fixed DR room involves site prep, power, and shielding — that's a months-long path, and by late fall the calendar is usually the binding constraint, not the equipment. Ask us what's realistic for your timeline before you assume the door is closed.

What about equipment we rent from you first?

Rental payments are generally deducted as an operating expense while you rent. If you convert to a purchase and apply accrued rental credit, the deduction timing follows the date you take ownership and place the equipment in service as your own asset. Tell your CPA how the conversion is structured — we'll provide the documentation.

Talk to a specialist

Know the number before the calendar decides for you.

Send us the modality and the timeline. We'll come back with real pricing, a realistic install date, and what it looks like after the deduction.

This calculator is an estimate, not tax advice. Equipped MD is an equipment dealer, not a tax advisor or CPA firm. Figures reflect 2026 federal limits — a $2,560,000 Section 179 cap, a $4,090,000 phase-out threshold, and 100% bonus depreciation — and assume the equipment is used more than 50% for business and is placed in service during your 2026 tax year. The estimate does not account for the taxable income limitation, state conformity rules, alternative minimum tax, passive activity limits, listed-property rules, or your individual circumstances. Confirm every number with your own tax professional before making a purchase decision.