Section 179 remains one of the best deductions for small businesses. What does this mean to your practice? Simply put, Section 179 is a¬†tax incentive where a practice can acquire new equipment, technology, and off-the-shelf software, including practice management and electronic medical records software, and receive a tax break. Is your practice searching to make a purchase in 2018? Increase your tax deduction up to $1 million on qualifying purchases this year with Section 179.
Essentially, Section 179 allows businesses to deduct the full purchase price of qualifying equipment and/or software. Additionally, practices choose whether to¬ purchase or finance software¬†during that tax year under Section 179. This incentive created by the U.S government is to encourage small businesses and practices, like yours, to invest in themselves.
How does it work?
Let‚Äôs say your practice wants to purchase $75,000 worth of technology this year. With Section 179, you may take the entire $75,000 deduction, allowing your practice extra funds to possibly acquire more equipment and technology. This helps you accelerate practice growth into the new year. In order to qualify for this deduction, the technology/equipment needs to be utilized more than 50% of the time.
How can your practice benefit?
For 2018, practices may deduct a significant portion, up to $1,000,000, for qualifying purchases. As stated earlier, this is for small to mid-sized business, like yours, possibly saving you quite a bit of cash!
Have you been looking to purchase new software for your practice but remain hesitant due to budget restraints? This may be the opportunity you have been searching for. Also, with CMS rolling out the 2019 Final Rule, it will be required for practices reporting to have 2015 Edition CEHRT. If your practice needs a new software vendor in order to attest, Section 179 2018 may save your organization money.
What can your practice¬ save?
Unfortunately, MicroMD doesn’t offer tax advice. We encourage you to check with your tax adviser because every practice is different. To give you an idea of what you might save in 2018, check out this¬ tax deduction calculator¬†to help you get an idea of what your tax savings¬†may¬†entail. Also, if you are looking into what types of equipment qualify under Section 179, more information can be found¬ here.
As you look toward 2019, start thinking about what equipment and technology will¬† enable your practice to deliver better care to your patients. Section 179 2018 has the potential to save your organization a lot of money. Also, it is not offered to this extent every year. If you are interested, you need to act now.