Special Business Tax Benefit Helps Healthcare Industry Invest in Necessary Equipment, Software; New Limits Set for 2014
With medical technology and processes rapidly evolving, it’s vital for healthcare facilities and practitioners to keep pace.
In order to effectively treat and serve their patients, medical providers have to be able to invest in the necessary equipment, software and updates. Fortunately, the Section 179 deduction helps them do just that while simultaneously saving money*.
Section 179 Basics
To increase commercial purchasing even in a tough economy, Section 179 of the IRS Code created a special tax incentive. Eligible businesses* are allowed to deduct the entire purchase price of capital equipment (bought or financed during the tax year) from their gross income.
Without Section 179, first-year deductions are much smaller, with the item’s total value depreciated equally over a period of years (the item’s “useful life” which ranges five to 10 years on average).
Who and What Qualifies?
Healthcare businesses and service providers—including independent contractors and sole proprietors—can take this deduction for eligible items that are used at least 51% of the time for business. Qualified equipment* can include anything from office furniture and mobile devices to medical software and imaging systems.
2014 Updates
The 2014 deduction limit is $25,000 (plus an adjustment for inflation) and purchasing limit is $200,000. Further updates and information are expected after April 15, 2014.
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