How to Maximize Tax Section 179 for Medical Imaging

Acquiring new diagnostic imaging equipment can be a substantial financial undertaking. Yet, staying competitive and providing top-tier patient care often requires significant capital investment. Fortunately, the IRS Section 179 tax deduction offers a powerful way for businesses to offset these costs, allowing you to invest in the technology your practice needs without delay. This guide will walk you through the key aspects of Section 179 and how it can benefit your business.

What is the IRS Section 179 Tax Deduction?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment in the year it is acquired and placed into service. This is a crucial distinction from standard depreciation, which spreads deductions over several years. Instead of waiting to recoup your investment, Section 179 provides immediate tax relief, which can significantly improve your cash flow.

For the 2025 tax year, the deduction limits are as follows:

• Deduction Limit: $1,220,000
• Spending Cap: $3,050,000 (after which the deduction begins to phase out)
• Bonus Depreciation: 60% (applicable once the Section 179 limit has been reached)
  

What Equipment is Eligible for Section 179?

The Section 179 deduction applies to a wide range of medical imaging equipment. The primary criterion is that the equipment must be tangible property used for business purposes and placed into service by December 31st of the tax year. This includes, but is not limited to:

• CT scanners
• MRI scanners
• Ultrasound machines
• PET scanners
• X-ray equipment
• Specialized systems like C-arms, chiropractor X-ray machines, and podiatrist X-ray systems.
• Refurbished CT scanners and used MRI scanners.
• Essential components like MRI parts, CT parts, or a new ultrasound probe.

Whether you are a chiropractor, an orthopedist, a podiatrist, or manage an urgent care clinic, this incentive can be a game-changer for justifying new technology. It also applies to hospitals, family practice offices, and other specialty clinics.

Practical Examples of Section 179 in Action

Example 1: A Chiropractic Practice

A chiropractic practice invests in a refurbished X-ray system costing $150,000.

• Using Section 179, the full $150,000 can be deducted in 2025.
• Assuming a 25% tax rate, this results in $37,500 in immediate tax savings.

An orthopedic group acquires a new C-arm for $250,000. This specialized radiology equipment is essential for surgical procedures and fluoroscopy.

• The full $250,000 can be deducted under Section 179.
• At a 30% tax rate, this yields $75,000 in tax savings.

An urgent care clinic needs a new portable ultrasound to handle a broader range of cases. The clinic purchases one for $75,000.

• This purchase qualifies for the full Section 179 deduction.
• At a 25% tax rate, the clinic sees a tax savings of $18,750

Combining Incentives for a Higher Deduction

In addition to Section 179, bonus depreciation at 60% (for 2025) can be applied to both new and used medical imaging equipment and radiology equipment, providing even greater tax relief. Practices making multiple purchases or investing in higher-cost systems can benefit from combining these incentives.

Maximizing Your Deduction with Leasing and Financing

Many practices wonder if they can benefit from Section 179 without outright purchasing their CT scanner, MRI scanner, or other medical imaging equipment. The good news is that leasing or financing arrangements—such as capital leases—may still qualify for the deduction, as long as the equipment is placed in service within the tax year. It’s important to work with your CPA to ensure your lease structure aligns with IRS requirements and that the equipment qualifies. This flexibility allows practices to upgrade their diagnostic imaging equipment without the need for full upfront payments and still take advantage of the tax benefits.

Partnering with an Expert

The December 31st deadline is a critical factor for capitalizing on these benefits. A successful acquisition and installation process requires more than just a purchase order; it includes delivery, setup, and final readiness for clinical use.
This is where a trusted partner becomes invaluable. MXR Imaging, a leading medical imaging distributor, provides comprehensive solutions for the full spectrum of imaging modalities. We are a team of medical imaging experts who understand the complexities of equipment acquisition and can help you navigate this process seamlessly.
Our comprehensive service offerings include:

• A wide selection of new, used, and refurbished equipment from top manufacturers.
• Flexible financing options that align with your budget.
• Expert installation and training to ensure your team is ready from day one.
• Ongoing service and support to keep your systems running at peak performance.
• Section 179 offers a powerful opportunity to make a smart, fiscally responsible investment in your facility. The key is to act in a timely manner.

Contact MXR Imaging today to explore our extensive inventory, discuss financing options, and learn how we can help you put your equipment into service before year-end to take full advantage of this powerful tax incentive.

Disclaimer: The information provided is for general informational purposes only and does not constitute tax, legal, or financial advice. We do not provide professional tax or accounting services. The specifics of the Section 179 deduction, including eligibility, limits, and how it applies to your business, are complex and subject to change by the IRS.

MXR Imaging, Inc. and its affiliates do not provide professional tax, legal, and/or accounting advice. This material and the information contained herein is being provided for general informational purposes only. The specifics of the Section 179 deduction, including but not limited to, the eligibility, limits, and requirements, are subject to change by the IRS and may differ based on your business needs and circumstances. Before engaging in any transaction, you should consult with your own tax, legal and/or accounting advisors.