No. The depreciation deduction is based on the cost basis of the asset, not the financing terms. Whether you get 0% dealer financing or pay 7% interest, the bonus depreciation deduction is the same. However, the interest rate does affect your overall return on investment and cash flow. At 0% dealer financing, your monthly payments are lower and your total cost equals the purchase price. At higher rates, you pay more over time, but the interest expense may itself be deductible as a business expense, providing an additional tax benefit.
