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 2011 may be as much as $500,000.

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. 

In fact, the amount you'll save in taxes could be more than the amount you'll pay in finance payments the entire first year. 

Here's an example:
Let’s say you buy a $30,000 piece of equipment during the fourth quarter. Tax code revisions allow you to expense the entire $30,000 from your practice revenue. The result is $10,500 trimmed off your taxes if you’re in the 35% tax bracket.

The changes to Section 179 of the IRS Tax Code can make acquiring any practice equipment a great business decision.