Healthcare Financing Insights

Tax Month for Tax Leases

Tax Month for Tax Leases


April is widely known as “tax month”, when individuals and corporations scramble to submit their taxes on time. But tax related activities do not have to be last minute or daunting. Many healthcare providers use tax leases to expense the entire rental payment instead of taking depreciation.
A tax lease can be used for almost any purchase or investment, such as medical equipment, HVAC systems, lighting, office renovations and expansions. Michael Gsellmeier, Vice President at First American, explains that “Many of the healthcare groups we work with use our tax lease to minimize their federal income tax liability, which helps to maximize shareholder distributions.” Michael's clients have used tax leases for C-Arms, robotic surgery systems, operating tables, and surgery room renovations. 
Potential benefits* of using a tax lease:

  • Lower Taxes: Mitigate federal income tax liability and enjoy reduced risk for your organization and greater confidence from your stakeholders.

  • Lower Monthly Payments: Expense the entire rental payment and reinvest tax savings in your organization.

  • Accelerate Savings: Save on total and monthly costs. Savings from this structure often outperform paying cash or using a traditional line of credit.

If you are interested in learning more about tax leases, or want to have a discussion about how a tax lease could benefit you, please contact us at or (585) 643-3268. Your local First American Healthcare Finance representative will contact you soon.

*Consult your tax advisor for details
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