Optometrists have an immediate opportunity to capture tax savings. If you act before the end of the year, you can take advantage of the federal government’s Section 179 Tax Code Deduction and the American With Disabilities Act Tax Credit.
According to the IRS, taxpayers can choose to treat the cost of property, such as ophthalmic equipment, as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as Section 179 property.
The Americans with Disabilities Act Tax Credit also can make investing in equipment by the end of the year a good deal, says Phill Phillips, president, Latham and Phillips Ophthalmic. According to Phillips, ODs who purchase equipment that can be used to service patients with disabilities will benefit from atax break equal to half the cost of any piece of equipment purchased to service patients with disabilities. So, for instance, if you purchased a wheel chair glide that cost $1,200, you would get a $600 tax credit. If you purchase a $4,000 Reliance stand with a foot lamp that is made to bend far enough down to examine a patient in a wheelchair, you would get a $2,000 tax credit.
Resources
• Click here for more information about the
IRS SBJA and Section 179 Deduction
• Click here for For more information about the
American with Disabilities Tax Credit
Take Action Now to Capture Tax Savings
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Conduct a year-end analysis of your practice’s equipment needs.
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Create and evaluate your equipment wish list.
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Consult with your tax advisors to evaluate if it is advantageous to purchase that equipment this year.
