Buy equipment in 2013 and get key tax deductions

Optometrists are encouraged to consider such purchases this year.

Optometrists who buy new or used equipment before the end of 2013 can take advantage of two key tax deductions.

The deductions come through Section 179 of the Internal Revenue Service (IRS) tax code and Bonus Depreciation. Optometrists are encouraged to consider such purchases this year because the tax deduction amounts are scheduled to change. They are likely to be less favorable in future years, according to AOAExcelTM resources.

Deductions apply to items practices commonly need, including:

  • Machines, such as optical coherence tomography (OCT)
  • Computers
  • Computer software (off the shelf)
  • Office furniture
  • Equipment, such as ophthalmic instruments

Section 179 allows your business to deduct up to $500,000 of the full price of qualified new or used equipment and certain software purchases, up to an investment limit of $2 million. After you exhaust Section 179, you can apply a Bonus Depreciation of 50 percent to the remaining balance for new equipment only.

To estimate potential savings, use the Tax Savings Calculator offered by Healthcare Professional Funding (HPF), an AOAExcelTM Endorsed Business Partner. HPF also offers additional resources, including ways to finance such purchases—both online and at 855-944-2265.

December 12, 2013

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