Buying a laser before December 31? Read this first

Every December, owners hear the same advice: buy something before year-end for the write-off. Sometimes that’s exactly right. Just as often, it’s how a device ends up in a treatment room because of the calendar, not because the business needed it.

Here’s how to think about a big purchase in the last weeks of the year, so the deduction works for you instead of the other way around.

The test before the tax

Start with one question: would you buy this if there were no deduction? A deduction lowers your taxable income. It doesn’t make the purchase free. You still spend the full amount, and only part of it comes back to you through lower taxes.

So run the business case first. How many treatments does it take to pay for itself? Who runs it, and do they have room on their schedule? Does it bring in new clients or just shift existing ones to a new service? If the numbers work, then timing matters, and that’s where the rest of this article comes in.

Two ways to write it off in the first year

Normally, equipment is deducted a little at a time over several years. Two rules let you deduct much more of it up front.

• Section 179. You can elect to deduct the cost of qualifying equipment in the year you place it in service. For 2026, the limit is $2,560,000, and it starts shrinking once you place more than $4,090,000 of equipment in service during the year.² The deduction is also limited to your taxable business income for the year; anything above that carries forward.¹
• Bonus depreciation. For qualifying property acquired after January 19, 2025, bonus depreciation is back at 100%, with no dollar limit and no business-income limit. It applies to new and used equipment.³

Your tax preparer will usually use one, the other, or a mix. What matters for you is that the decision can be made deliberately, piece by piece, rather than defaulting to “deduct everything.”

It has to be ready by December 31

This is where most year-end purchases go wrong. The deduction belongs to the year the equipment is placed in service, which means it’s ready and available for its specific use.¹ Signing the order in December doesn’t count if the laser arrives on January 6.

If you’re buying near year-end, get the delivery and installation dates in writing, and keep a record of the day it was ready to use: the install confirmation, the training date, or the first day it could take a booking.

Financed equipment counts

You don’t have to pay cash to take the deduction. Equipment bought with a loan or financing agreement can qualify in full in the year it’s placed in service, even though you’re paying for it over time.¹

Leases are different. Some leases are really purchases in disguise, like a lease with a $1 buyout at the end. Others are true rentals, where you deduct the monthly payments instead of the equipment. Read the agreement with your tax team before you sign, because the paperwork decides which one you have.

When faster isn’t better

Deducting everything this year feels good in April. It isn’t always the best move. Slow down if:

• This year’s income is lower than next year’s will be. A deduction is worth more in a higher-income year. If you’re opening a second location or adding providers, next year may be the better year to use it.
• You’re an S-corp owner. Big deductions lower the business income that flows to you, which can also lower other deductions tied to that income.⁴ Your preparer should look at the whole return, not just the equipment.
• You might sell or stop using it. If you sell the device later, or business use drops to 50% or less, some of the deduction you took can come back as income.¹
• You’re applying for a loan. Lenders read your tax returns. A year where profit looks small on paper can make financing a build-out or a second location harder.

Build-outs and treatment rooms

Equipment isn’t the only thing that can move faster. Many interior improvements to commercial space, like a new treatment room, lighting, or finishes, can qualify for bonus depreciation or Section 179 as qualified improvement property. Enlarging the building, elevators and escalators, and the building’s internal structural framework don’t count.¹ Furniture and fixtures for the space usually qualify as equipment.

If you’re mid-build-out at year-end, the same rule applies: what’s finished and ready for use by December 31 belongs to this year. What isn’t, belongs to next year.

What to do next

Before December 31, list the purchases you’re planning in the next twelve months, get dates in writing for anything arriving soon, and have your tax team run your projection with and without each purchase. Then decide what to buy, when, and how much to deduct. For the rest of your year-end list, see year-end tax moves, and for how we plan with beauty and med spa owners, see beauty and med spa accounting.

Frequently asked questions

If I order equipment in December but it arrives in January, can I deduct it this year?

No. The deduction belongs to the year the equipment is placed in service, meaning it’s ready and available for use. If it isn’t delivered and ready by December 31, it’s a deduction for next year.

Can I deduct a laser I financed?

Generally, yes. Equipment bought with a loan or financing can qualify for Section 179 or bonus depreciation in the year it’s placed in service. A true lease is different: you deduct the payments instead.

Is Section 179 or bonus depreciation better?

It depends on your income and plans. Section 179 is limited by your business income and is elected asset by asset. Bonus depreciation has no income limit. Your tax team can use either, or a mix, to land the deduction where it helps most.

Sources

1. IRS, Publication 946, How to Depreciate Property (opens in a new tab)
2. Current Federal Tax Developments, 2026 Inflation Adjustments: Revenue Procedure 2025-32 Analysis (opens in a new tab)
3. Sikich, Breaking Down the OBBBA Accelerated Depreciation Opportunities (opens in a new tab)
4. IRS, Qualified Business Income Deduction (opens in a new tab)

This article is for educational purposes only and is not tax, legal, or investment advice. Tax rules change and depend on your specific facts. Talk with a qualified professional before acting on anything here.