Updates to the Section 179 Tax Deduction: What Does This Mean for Your Diagnostic Imaging Equipment Purchases in 2013?

Last year, we shared some information on the Section 179 Tax Deduction and how it applies to your diagnostic imaging equipment purchases. Well, 2013 is a new year and there are some important changes to this deduction that you need to know about.

Before we get into the specifics of what has changed, we should begin with an overview of the Section 179 Deduction. The deduction is, quite simply, a tax code put in place from the IRS allowing businesses to deduct the full purchase price of equipment purchased within the tax year for which they’re filing. The deduction is valid for new or used equipment, and can be applied to equipment that was purchased or leased (as long as the Lessee retains ownership of the equipment at the end of the lease). The idea behind this deduction is that instead of writing off a piece of equipment that you purchased for your business over time (as in depreciation), businesses are able to write off the full purchase price of that piece of equipment. What this means for your practice is that it allows you to acquire additional pieces of diagnostic imaging equipment sooner than you would be able to if you could only write off a small amount at a time.

So what has changed about the deduction for 2013? According to the updates in the tax code, the total amount that can be written off for 2013 is $500,000 (compared to $139,000 previously). This is good news as it allows room for more diagnostic imaging equipment purchases for your facility in 2013 knowing that you’re going to be able to write off a greater amount at the end of the year than you previously could. Additionally, the limit on equipment purchases is $2,000,000 (compared to $560,000 prior to 2013). This limit means that after $2,000,000 is spent on capital equipment purchases by your facility, the amount that is allowed to be deducted begins to reduce. For practices that spend more than $2,000,000 on equipment purchases, a Bonus Depreciation of 50% is applied to the amount (in excess of the $2,000,000 limit) that you spent. The increase in this limit over the previous year means that you can spend more on outfitting your practice with diagnostic imaging equipment (up to $2,000,000) and still receive the full deduction.

Overall, the changes to the Section 179 Tax Deduction mean great news for practices in need of diagnostic imaging equipment for their facility in 2013. If you’re looking for high quality, used diagnostic imaging equipment – you’ve come to the right place. Contact us to find out more about how we can help you make the most of your diagnostic imaging equipment budget and take full advantage of the Section 179 Tax Deduction in 2013.

For more information on the specifications, qualifications and limitations of the Section 179 Deduction, visit: https://www.section179.org/section_179_deduction.html.