The financial advantages of Section 179 for 2024 make it an invaluable tool for healthcare practitioners looking to invest in new equipment or technology. This provision of the IRS tax code offers a unique opportunity to significantly minimize the upfront cost of capital equipment investments by allowing you to deduct a large portion of the equipment’s value in the first year. With Section 179, you benefit from immediate tax savings and equip your practice to thrive with upgraded technology and devices that improve patient care and operational efficiency, creating long-term rewards.
As we approach the close of 2024 and prepare for 2025, now is an ideal time to explore how Section 179 can enhance your practice and patient care. To help you capitalize on the opportunity, we’ve highlighted vital information you need to know about Section 179: what it is, who qualifies, recent changes to the tax code, and why there’s no better time than now to take advantage of these valuable tax savings.
What is Section 179?
Section 179 of the IRS tax code is a government incentive to encourage businesses to invest in themselves by purchasing new equipment or technology. Medical professionals can deduct the FULL purchase price of qualifying equipment bought or financed during the tax year from your gross income.
Section 179 for 2024: How Has the Tax Code Changed?
While Section 179 has been available for years, its benefits were significantly enhanced in 2018. With the current limit set at $1,220,000 and a bonus depreciation rate of 60%, 2024 is an excellent year to invest in new equipment for your practice. This favorable tax allowance enables you to upgrade, expand, and improve your practice while maximizing financial savings on essential purchases.
What is the Timeline for 2024?
If you acquire your equipment and put it into use before December 31, 2024, you qualify for this tax deduction.
How Much Can I Deduct for the 2024 Tax Year?
If you are the legal owner of the equipment for tax purposes, you may be able to deduct the total cost of any equipment you acquire and put into use in 2024 — up to $1,220,000. There’s a $4,270,000 cap for equipment purchases per business. (If you spend between $1,220,000.00 and the spending cap of $4,270,000, bonus depreciation of 60% may apply.)
Can I Finance Medical Equipment and Still Take the Deduction?
Absolutely, you can, and it’s often a great option. Capital Leases and Equipment Finance Agreements qualify for the Section 179 deduction, which means it’s an ideal time to invest in technology from CuraMedix.
NOTE: Your finance payments may be less than the deduction amount, potentially creating a profit when you finance the purchase!
Why Should I Utilize the Section 179 Tax Code?
Using the Section 179 deduction may lower your tax payment to the government and free up cash for other business needs. By taking advantage of this tax deduction, you keep more of YOUR money in YOUR pocket. You can potentially create savings that will substantially lower your equipment purchase price.
Does Section 179 Tax Deduction Apply to Me?
The provisions of Internal Revenue Code Section 179 allow a sole proprietor, partnership, or corporation to expense tangible property in the year it is put into use.
Capital Equipment Investment: An Example of the Tax Deduction
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Equipment Cost: Medical Device: $50,000 Deduction: $50,000 Tax savings: (assuming 35% tax bracket) $17,500 Cost of Equipment After Tax Savings: $32,500 |
Are There Any Caveats for Physicians?
Like any tax deduction, Section 179 stipulates spending money to save money. While it shouldn’t be the sole reason for making a capital equipment investment, it provides a compelling incentive for medical professionals looking to take patient care to the next level with the latest technologies and innovations. For those aiming to upgrade equipment or integrate revolutionary technologies like EPAT, ESWT, or EMTT, Section 179 encourages medical professionals to act. It offers an added advantage to meet those goals before the end of 2024.
Since every medical practice is unique, it’s wise to consult your tax advisor for personalized guidance. If you're interested in learning more about integrating EPAT, ESWT, or EMTT into your practice to improve patient outcomes, contact us today!
About CuraMedix
CuraMedix, the leading U.S. distributor of STORZ Medical devices, provides its partners with exceptional customer service, marketing guidance, and technical support. The CuraMedix portfolio of products includes the radial pressure wave and focused shockwave devices, and now MAGNETOLITH, the new EMTT device.
