Prep Your Medical Office for Tax Time: Use These Tips To Take Advantage of Section 179

By: Daryl Smith on December 5th, 2023

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Prep Your Medical Office for Tax Time: Use These Tips To Take Advantage of Section 179

If you’re in the black at the end of the year, your business is in a good place. Unfortunately, having leftover cash isn't great for your tax situation. If you need to reduce your taxable income by boosting your spending before the end of December, we're here to help.

Many medical offices and other businesses find Internal Revenue Code Section 179 to be helpful at the end of the year. This code allows your business to deduct the entire cost of qualifying equipment and property the year you begin to use them for your business, rather than depreciating the expenses of the equipment or property over years to come.

Here, we'll provide a quick overview to help you use the parameters of Section 179 to your advantage.

Understand Eligible Expenses

First, you'll need to know which expenses you can apply toward the deduction. Medical equipment, air filtration systems, new technology, office furniture -- all of these items count. Basically, if it's a physical item that makes sense for a medical office to have, there's a good chance you can write it off under Section 179.

Confirm Qualification

Good news: Most small and medium-sized businesses and individuals qualify for Section 179 deductions.

Purchase Qualifying Assets

Once you understand your purchasing limit and are sure that you'll qualify for a Section 179 deduction, start shopping! Just be sure that you can pay for the product in full before the end of the year.

Know Your Annual Limits

In 2023, businesses are able to spend up to $2.89 million on qualifying equipment for a maximum Section 179 deduction of $1.16 million.

Keep Great Records

In the unfortunate event that your business is audited, you'll need to make sure you keep careful records. Work with your accountant to ensure that your records are accurate and easily accessible.

An important note: Tax rules can change from year to year, so it's smart to talk with your accountant or other qualified tax professional who can help you make sure you're making the most out of Section 179.

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We know that you're busy providing excellent patient care, and one of the most common reasons to hire an IT provider is to help practitioners and office managers focus on those who matter most. We know what it takes to get your technology flowing flawlessly, and we're excited to get to know you and your practice. Reach out to us today to learn more!