Section 179 Tax Deduction for Medical Purchases to Decrease Your Tax Payments
What is the Section 179 Deduction for Veterinarians?
A Section 179 tax deduction allows veterinarians to deduct the full purchase price of qualifying new or used veterinary equipment and off-the-shelf software that is placed into service in 2023. With the help of this tax deduction, investing in your practice with the newest medical equipment and technology, you can provide higher quality care to your patients while increasing additional cash flow.
What Types of Medical Purchases Qualify for Section 179?
Medical diagnostic equipment and off-the-shelf software used by veterinarians can both qualify under Section 179 of the IRS Tax Code. Qualifying purchases may also include furniture, air conditioning systems, heating and more. (refer to your accountant for specific details)
Section 179 Tax Benefit Example
*Example assumes a 24% tax bracket. Check with your accountant for your tax bracket.
When is the Deadline for Section 179?
Equipment must be purchased and put into service between January 1, 2023 and December 31, 2023.
Limits of Section 179
There are some important limits to Section 179 deductions to be aware of. Visit the official website of Section 179 for more information.
2023 Deduction Limit
The Deduction Limit for 2023 is $1,160,000, which applies for new and used equipment, as well as off-the-shelf software purchased in 2023.
2023 Spending Cap on Equipment Purchases
The Spending Cap for 2023 on equipment purchases is $4,050,000, which is how much you can spend on qualifying equipment before the available deduction decreases.
Bonus Depreciation
The Bonus Depreciation for 2023 is 80%, which is taken after the spending cap is reached.
Interested in a Customized Equipment Quotation?
Feel free to contact us! For your convenience, Vero Veterinary Partners offers easy payment plans with PayPal, Pay Later, Venmo, Credit Card and Equipment financing. (refer to your accountant for specific details)