You’ve recently run across the perfect piece of equipment to replace an older table in your practice. Best of all, it’s reasonably priced. But your budget is tight so you decide you’d better hold off on making the purchase.

But consider this – buying now can keep money in your pocket when you claim the tax benefits.

With Section 179 of the IRS tax code, your tax deduction for new equipment placed in service in 2007 is now $112,000.00 – whether for clinical equipment, office equipment, computers or software.

Bigger deductions mean less taxes

Taking advantage of tax strategies like the Section 179 deduction on equipment purchases can help you cut your tax bill significantly. Here’s how:

Let’s say you buy a $35,000.00 piece of equipment during the fourth quarter. Recent tax code revisions allow you to expense the entire $35,000.00 from your practice revenue. The result is $10,500.00 trimmed off your taxes if you’re in the 30% tax bracket.

The changes to Section 179 of the IRS Tax Code can make acquiring any practice equipment – whether it’s clinical, office equipment, computers or software – a great business decision.