If you are thinking of buying a new or refurbished ultrasound system, consider the savings you can realize as a result of Section 179.
2016 Deduction Limit – $500,000
This deduction is good on new and used equipment, as well as off-the-shelf software. This limit is only good for 2016 and the equipment must be financed or purchased and put into service by the end of the day Dec. 31, 2016.
2016 Spending Cap – $2 Million
This is the maximum amount that may be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis. This spending cap makes Section 179 a true “small business tax incentive.”
Bonus Depreciation – 50%
Bonus Depreciation is generally taken after Section 179 spending cap is reached. Note: Bonus depreciation is available for new ultrasound equipment only.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Section 179 In Brief
Section 179 is a tax code created to help businesses. By allowing businesses to deduct the full amount of the purchase price of equipment (up to certain limits), Section 179 is a fantastic incentive for businesses to purchase, finance or lease equipment this year.
Section 179 is valid on most types of equipment. There is little sense in allowing a deduction on only obscure equipment, so Section 179 is aimed at general business equipment as well as off-the-shelf software. If you use it in your business, it probably qualifies.
Section 179 can greatly help your bottom line. By deducting the full cost, you lower the amount you pay for equipment and/or software substantially. And these benefits can be further expanded if you choose to lease or finance your equipment & software.
Section 179 is simple to use. All you need to do is buy (or lease) the equipment, and use a special IRS form.
Section 179 enhancements typically expire at year’s end. The various Stimulus Acts over the past few years have included special provisions for Section 179 and Bonus Depreciation, and greatly increased the limits on how much businesses could deduct. But the enhancements usually expire at the end of the year. There is simply no better time than now to take advantage of Section 179 and Bonus Depreciation. Why? Because it is a Use-It-or-Lose-It write-off that ends Dec. 31.
Source: Section 179.org