Doctors, and others business owners, who acquire equipment for their business: medical devices, machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code: a Section 179 deduction.
According to www.section179.org, “both the ‘Tax Relief Act of 2010’ as well as the ‘Jobs Act of 2010’ that passed in late 2010 affected Section 179 in a positive way for this 2012 tax year.
Following are the highlights for the 2012 tax year:
2012 Deduction Limit = $139,000: This means you are eligible to deduct $139,000 of the purchase of your equipment from your taxes.
2012 Limit on Capital Purchases = $560,000: Section 179 Threshold for total of equipment & software that can be purchased has increased to $560,000.
2012 Bonus Depreciation = 50%: The new law allows 50% “Bonus Depreciation” on qualified assets placed in service during 2012.”
Visit the tax calculator to run a few scenarios. Here is a quick example of an average device purchase:
With these savings available for the current tax year, now is a very good time to learn more about available new technologies, and consider investing in your practice.
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