| If you are a medical practitioner or a medical center | | | | also depreciate some of the value next year (up to |
| such as a clinic, diagnostics centre or a hospital; you will | | | | %10). Thus, you get benefit from at least two years or |
| probably know that how hard it can be to keep up | | | | more when you buy the medical equipment before the |
| with the new advances in medical technology. It's very | | | | end of the year. This is a very useful incentive for |
| essential to have state of the art medical equipment, | | | | medical practitioners. |
| so that many new diseases and medical conditions | | | | However, there is a major tax benefit that has been |
| can be diagnosed. Especially with the new | | | | introduced by the US Congress couple of years ago. |
| breakthroughs in genetics and medical sciences, new | | | | This allows you to save money by not depreciating |
| equipment is introduced everyday for diagnosing | | | | just the small portion of your medical equipment |
| illnesses and also for treating them. Of course, some | | | | expense; but by deducting the full cost of the |
| equipment like IV Pumps are never out of style and | | | | equipment (up to a total of a certain amount), so that |
| they can be used in any medical institution for years | | | | you are able to get a real incentive for purchasing your |
| and years until they are worn out. So whether you opt | | | | medical equipment now, instead of waiting for the next |
| for some new equipment that has just come out or if | | | | year to come. This special tax benefit is called Section |
| you are looking for classic equipment that needs to be | | | | 179 of the US Tax code and it allows you to save a |
| replaced; chances are you will be faced with buying | | | | maximal deductible of $100,000 a year. In addition, the |
| new medical equipment every year. | | | | total investment that you are able to make through |
| However, many medical practices face the problem of | | | | Section 179 has been increased to $ 400,000 per year. |
| too little cash and too much investment that needs to | | | | So, the incentives outlined above make it really feasible |
| be done. Sometimes it might seem financially feasible | | | | to buy medical equipment before the end of the year. |
| to just buy or lease the equipment next year, as this | | | | They are pretty good incentives and buying a medical |
| year the business and the cash flow might have been | | | | equipment of even $ 100,000 can be deducted up to |
| slow. Well, there are several tax benefits of buying | | | | %100 with the depreciation incentives and with the |
| medical equipment before the end of the year; which | | | | Section 179 combined. This way you do not need to |
| will make purchasing the medical equipment more | | | | wait for next year for the cash flow to get better, as |
| efficient. | | | | you will end up saving more this way. When you |
| Tax benefits of buying medical equipment before the | | | | purchase medical equipment, the tax benefits of buying |
| end of the year starts first with the depreciation of the | | | | medical equipment before the end of the year will |
| equipment. This is perhaps the simplest form of tax | | | | definitely cause you to pay lesser taxes, so that you |
| benefits for buying medical equipment, as this benefit | | | | get some of your money back in forms of taxes. This |
| has been around for decades. Every time you buy | | | | way waiting for the next year will mean that you end |
| any equipment before the end of the year; you can | | | | up paying more for the medical equipment, if you think |
| depreciate its value up to %50 on some medical | | | | about the taxes that you will end up paying. However |
| equipment. Depreciation in essence means that you | | | | for those medical practitioners who may have cash |
| are able lower the value of your equipment by its | | | | shortages and who are not able to buy their |
| usage and the number of years that it has been used. | | | | equipment; then you can think about leasing them as |
| In essence, this means that you have bought | | | | leasing the medical equipment will be 100% deductible |
| something new and it has lost is value with usage and | | | | from your taxes. |
| years. Therefore, you are able to reduce your taxes | | | | Always check with your tax advisor for all tax related |
| by depreciating and projecting this loss of value to | | | | advice. You can mention the sections and codes |
| your tax forms. This is something that can be used for | | | | referenced in this article. |
| any type of equipment; but especially for medical | | | | There can be some tax advantages available when |
| equipment, the tax depreciation benefits are larger. So | | | | buying medical equipment. It is also important that your |
| not waiting for the next year and buying your medical | | | | purchase price is competitive to maximize the |
| equipment before the end of the year can be | | | | purchasing process. Be sure to work with Medical |
| beneficial in terms of depreciation, as you will deduct | | | | Equipment Pros to ensure that you buy the right |
| some percentage (up to %50) this year and you will | | | | equipment at the best price. |