Need Radiology Equipment? Put the 179 Tax Deduction to Work for You

Does your practice, clinic or hospital need new radiology equipment? There’s never been a better time to take the leap, thanks to the new Section 179 Tax Deduction. You can find it on page 154 of H.R. 8: American Taxpayer Relief of 2012, which is better know as the “Fiscal Crisis Bill.” But what you really need to know is this: you can claim deductions on new or used radiology equipment and necessary supportive hardware and software.  And more importantly, you can actually purchase the equipment and make small monthly payments to pay for the use of it over time through a properly structured lease. Surprisingly, the tax savings can also be used to make some of the monthly payments, which could reduce the overall cost of ownership.

But before I get ahead of myself, let’s talk the basics.

• Section 179 isn’t really complicated.  It simply allows businesses to deduct the full purchase price of qualifying equipment or software that’s purchased or financed during the tax year.  That means you can deduct the full purchase price from your gross income.  The U.S. government created this incentive in order to encourage businesses to buy equipment and invest in themselves.  It’s one of the few Stimulus Bill incentives that actually help small businesses!  (But it can still benefit large businesses, too.)

2.  It works like this:  your business can buy specific items or equipment (new or used) and write off the entire equipment purchase price for the year they buy it—instead of writing it off a little at a time through depreciation.  It’s designed to motivate the American economy and your business to move in a positive direction—and it can really boost your bottom line.

3.  Just stay within the limits.  You can purchase $2 million worth of equipment in 2013, and write off as much as $500,000.  The deduction begins to phase out dollar-for-dollar after $2 million is spent by a given business.

4.  There’s also 50% Bonus Depreciation for purchases of new equipment.  This is taken after the $2 million limit in capital equipment purchases—even if your business will have net operating losses in 2013!  

5.  Take advantage of the updated 2013-2012 easy to use calculator that will help you estimate your potential tax savings. Simply enter the purchase price of your equipment, and let the calculator take care of the rest.

6.  Before you purchase or lease any new equipment, make sure you talk to someone you can trust, and who understands the ins and outs of Section 179—like Atlantis Worldwide.  Not only can we help you determine if you should buy new or refurbished equipment for your needs, but also how to correctly work within the boundaries of Section 179.

To view the specifics about Section 179 visit http://www.section179.org/section_179_deduction.html

For more information please contact us or call 212-366-9100

 

Blogs you might also be interested in:

• Should your business lease or buy medical imaging equipment?
• To Upgrade Diagnostic Imaging Systems or Not to Upgrade?
• Used MRI & CT Trade-ins: Get a Bang for Your Buck!

 

Meet the author: Vikki Harmonay