Bottom-line Saving Tip:
If you’re looking to make capital improvements, including the purchases of hardware and software to help your office, you might want to take advantage of a valuable tax deduction before the end of the year. The section 179 deduction allows small businesses - including most medical practices - to write off purchases of capital improvements to help offset their costs. This deduction is currently scheduled to end at the end of this year. Congress could extend section 179, however, no legislation is yet in place.
Under the section 179 rule, businesses can deduct the entire cost of qualified equipment and software purchased during the 2013 tax year. This deduction is extremely valuable for businesses because it’s a direct write-off from their gross income. This incentive was created in 2008 during the financial crisis and was never expected to be a long-term change in the tax code.
The bottom line is if you’re planning to make needed healthcare IT improvements that qualify it may very well be in your best interest to make the purchase before the end of the year. Please consult your tax advisor for full details about section 179, and how it can benefit your business in the coming week.