The provision under the American Taxpayer Relief Act, meant to aid small and mid-size businesses, has been expanded by Congress to a deduction limit of $500,000.
On Dec. 18, Congress voted to reinstate the deduction limit to $500,000 under the Protecting Americans from Tax Hikes Act. Without the PATH Act, the deduction limit would have fallen to $25,000 — five percent of the amount offered in previous years.
The PATH Act retroactively restores the deduction limit for the 2015 tax year, and permanently sets the $500,000 deduction limit with inflation allowances for years to come, according to Section179.org.
Section 179 is the tax code that allows medical professionals to deduct the full purchase price of medical equipment from their gross income during a tax year. This deduction is applicable to DRE’s high quality new, used and refurbished medical and surgical equipment.
In order to qualify for Section 179 deductions, all purchases of capital equipment must have been finalized by Dec. 31, 2015 at 11:59 p.m.
- 2015 Deduction Limit = $500,000
- 2015 Limit on Capital Purchases = $2,000,000
- 2015 Bonus Depreciation = 50%
In addition bonus depreciation is restored through 2019:
- Businesses purchasing new equipment can depreciate 50% of the purchase price in 2015, 2016 and 2017
- Bonus depreciation will then phase down to 40% in 2018 and 30% in 2019
To see how much you could save from Section 179 on your 2015 taxes, use this 2015 Section 179 Tax Deduction Calculator from Crest Capital.
Don’t miss out on valuable Section 179-eligible savings in 2016. Here at DRE, we’re ready to help you decide which medical devices will best suit your needs and provide them at a low price point.
For more information on our complete line of medical equipment, or to make a purchase, call 1-800-462-8195 or contact DRE today.
*DRE does not endorse any tax filing method and recommends that medical facilities consult a financial adviser to confirm that filing for Section 179 deductions is appropriate.