Can you believe it? The 2016 tax year is quickly coming to an end. That means it’s time to start thinking about how you can file your taxes to benefit your ophthalmic practice—and did you know there’s a way to get tax credit without any upfront cost? It might sound gimmicky, but it’s true! Let me explain:
Section 179 is a tax code put into place by the U.S. government to encourage business growth and improvement. The code allows businesses to deduct the total purchase price of qualifying software and equipment during the tax year. The ultimate goal is to help small to medium-sized businesses feel tax relief and invest in themselves.
So, after purchasing a piece of equipment, rather than yearly tax deductibles over a period of time, Section 179 allows the entire cost of an equipment purchase to be written off—as long as it is under $500,000.
But—this is where the “no cash out of pocket” comes in—you don’t necessarily have to purchase the equipment or software to qualify for this tax credit.
Section 179: Leasing Included
If your business purchased, financed, or even leased new or used equipment during the 2016 tax year, you qualify for Section 179. This means by using section 179 with an equipment lease or finance agreement, the amount deducted from your taxes will most likely surpass your total expenditure for the 2016 year.
In other words, your practice can lease state-of-the-art digital ophthalmic equipment and still receive the full equipment price deduction when filing your taxes.
Equipment and Software Qualifications for 179
EMR software, digital refraction systems, and digital imaging systems—almost all ophthalmic equipment and software qualify for section 179—so long as the equipment was purchased or financed and put to use between January 2016-December 2016.
So, as long as the equipment is new to you, was purchased, leased, or financed, and put to use in the 2016 year, you qualify for the Section 179 deduction.
Is Your Equipment Distributor 179.org Certified?
At Veatch, our equipment is Section 179 qualified; this means by purchasing your new equipment through us, you not only receive a full tax deduction, but you also update your practice and receive the added benefits of our service and repair team.
The Industry Is Moving Quickly—Save Money While Staying Ahead
You may have noticed there’s been a sudden shift toward digital ophthalmic equipment and offices. What’s more, the optometry field is now among the fastest-growing in our country (source). The Section 179 deduction is the perfect opportunity for you to update your office to the digital standards of today with minimal effect on your wallet.
There’s still time. Take a look at our digital refraction systems and their many benefits and consider making the switch before the end of the tax year.