Have you been putting off replacing that chair in exam lane three with the worn upholstery and the sticky foot pedal?
Are you still on the fence about that new digital fundus camera or that OCT system you’ve seen at the last three academy meetings?
Is your neck sore from cranking your head around that old phoroptor?
Well, stop procrastinating and make those purchases now. Because there are only a few weeks left in 2010 to qualify for the IRS’s Section 179 Deduction, which allows small businesses—that’s you—to write off the entire purchase price of equipment for the year you buy it. Forget about having to calculate all that pesky depreciation.
Do it now
The Section 179 deductions of 2010 have been extended by the American Recovery and Reinvestment Act of 2009, which extends the initial Economic Stimulus Act of 2008 through December 31, 2010. The same rules apply: these deductions go much deeper than just the highly publicized $600 consumer rebate.
Section 179 limits are $250,000 for the deduction; the total amount of equipment purchased cannot exceed $800,000 (up significantly over previous years). Equipment must be purchased or leased and placed into service by December 31, 2010.
Additionally, Section 179 has a one-time "bonus first year depreciation" of 50% on qualifying equipment to Section 179. This is after the above deduction limit is reached. In other words, if you buy enough equipment to exceed the $250,000 deduction, you can take a "bonus" 50% depreciation on the rest – this is in addition to normal depreciation.
But be aware, this is a one-year increase. Unless it is extended, the older Section 179 limits will revert for 2011. So, to take advantage of the higher limits, you need to act in 2010.
Qualified purchases
What can you deduct? Well, here’s what’s eligible:
And just FYI, tangible personal property used in business, some business vehicles, property attached to your building that is not a structural component of the building, and partial business use equipment (deduction will be based on the percentage of time you use the equipment for business purposes) also are eligible.
Section 179 helps you, the practicing ophthalmologist and small business owner, by
lowering the cost of equipment that you need to purchase or lease to run your day-to-day operations. Section 179 is
an incentive to invest in yourself by purchasing or leasing new equipment.
A few instruments to consider
-
Digital fundus cameras
- A-scan Ultrasound Devices
- OCT systems
- Auto Refractor Keratometers
- Slit Lamps
- Yag laser Capsulotomy systems
- Tonometers
- EMR systems
- Photocoagulation Lasers
- Ultrasonic Pachymetry
- B-scan Ultrasound
Learn more
There’s a terrific online resource to help you understand, navigate, and maximize your benefits from Section 179. Check out Section179.org, a free resource for the latest news and information on a range of tax deduction topics.
Or, if you are a hard-core government wonk, also check out the official IRS guidelines.
Incidentally, don’t just think big ticket at the end of the year. Many vendors are offering Q4 specials on a wide range of materials, supplies, disposables, and more. So check our Product Directory to remind yourself of what your office could really benefit from, then contact the vendors using our convenient "request quote" feature.
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