IRS Tax Code Section 179

Tuesday, August 4th, 2009

The Sky is Falling!

By Brian Benefield

Okay, the sky isn’t actually falling, but the tax deduction on office equipment soon will.

According to Section 179 of the IRS Tax Code, the cap on qualifying equipment is currently $250,000, but that will change drastically over the next couple of years. In 2010, the amount that you can expense will drop to $133,000. The following year, the deduction drops to its old limit of $25,000. The writing is on the wall: if you plan to make a significant upgrade to your practice, now may be the time. The $250,000 cap applies to office equipment, but it must be installed by December 31, 2009.

As we approach year-end, we anticipate that a significant number of practices will move to take advantage of the current cap. We recommend that you contact your accountant for more details, and to determine if an upgrade makes sense for you. If the answer is yes, you stand to benefit from our years of experience, whether you’re considering an upgrade to our MacPro server, or a move into your operatories for digital x-rays. Call today and let us help you maximize your tax dollars!