The provision under the American Taxpayer Relief Act, meant to aid small and mid-size businesses, has been upheld by Congress with a deduction limit of $500,000 for tax years 2016 and beyond.
On Dec. 18, 2015, Congress voted to indefinitely reinstate the deduction limit to $500,000 under the Protecting Americans from Tax Hikes Act. The PATH Act permanently sets the current deduction limit with inflation allowances for years to come, according to Section179.org.
Section 179 is the tax code that allows medical professionals to deduct the full purchase price of medical equipment from their gross income during a tax year. This deduction is applicable to DRE’s high quality new, used and refurbished medical and surgical equipment.
2016 Deduction Limit = $500,000
2016 Limit on Capital Purchases = $2,000,000
2016 Bonus Depreciation = 50% (extended through 2019)
In order to qualify for Section 179 deductions for 2016, all purchases of capital equipment must have been finalized by Dec. 31, 2016 at 11:59 p.m.
To see how much you could save from Section 179 on your 2016 taxes, use this 2016 Section 179 Tax Deduction Calculator from Crest Capital.
Don’t miss out on valuable Section 179-eligible savings in 2016. Here at DRE, we’re ready to help you decide which medical devices will best suit your needs and provide them at a low price point. The last shipping day of the year for DRE is Dec. 16th.
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