Question:
Is your practice purchasing less than $2M in equipment this year? Yes? Great!
You may qualify for up to $500,000 in tax write-offs from the IRS's Section 179 Deduction. Most people think the Section 179 Deduction is some mysterious or complicated tax code. It really isn't.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Here's a Simplified Breakdown
2016 Deduction Limit = $500,000 This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2016, and the equipment must be financed/purchased and put into service by the end of the day, 12/31/2016.
2016 Spending Cap on equipment purchases = $2,000,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive".
We Will Make It Easy For You
Davis Medical has worked with our lending partners to offer an extremely low 4.5% interest financing option, with 90 days of no payments. That means you can have your new equipment in 2016, still qualify for your Section 179 Deduction, and not pay a dollar out of pocket until 2017. After 12 monthly payments, you have the option to pay the loan off with no penalties. Your Medicare reimbursements will have more than paid the equipment off by then.
Act Fast
If you've picked up a newspaper or watched the news, you know that the Fed is currently threatening to raise interest rates, so we can't guarantee that we can offer this leasing option with this low an interest rate even through the end of the year. So if you need an Ultrasound, Stress Test, EKG, Defib, or any cardiology equipment at all, contact us immediately for a quote.
**The above statements should not be construed as legal or tax advice, please speak with your CPA before purchase to ensure that you do indeed qualify** |