Many doctors give special consideration to purchasing and financing equipment as the end of the year approaches. There are a variety of reasons for this, but the response we'll typically hear is it gives them the opportunity to take advantage of tax benefits associated with Section 179 of the Tax Code.
by Tony Dickinson, President - NCMIC Finance Corporation in Get Financing on Sunday, October 9, 2016
While it’s true doctors may be able to write off up to 100% of equipment purchases (even if it’s financed), there are a number of other reasons to consider expanding your practice as the year winds down ...
Vendor Incentives & Specials – As 4th quarter approaches, equipment vendors may offer special incentives or discounts to reduce inventory. It could be the perfect opportunity for you to get a great deal and save on taxes.
Year-End Quotas – The push is on for equipment sales representatives to meet year-end sales goals and quotas set by management or the manufacturer. This may allow you to take advantage of price breaks on equipment.
Financing Incentives – Finance companies and other lenders tend to offer special financing options as the year winds down. This can mean lower payments or additional payment flexibility, including deferred payments.
Planning for Next Year – Most doctors set goals for annual practice growth. It’s important to evaluate where you stand versus those goals throughout the year and as the 4th quarter begins. If you’re not where you thought you’d be, there’s still time to make adjustments. Now is the time to alter growth plans, evaluate staffing and equipment needs, and set goals for next year.
Whether you’re considering buying equipment for tax reasons, year-end incentives or to meet planning goals, you should always talk to your accountant first.
When you’re considering equipment financing, be sure to call NCMIC’s lease/loan comparison hotline to help make sure you’re getting the best financing terms possible.