Section 44 ADA tax credit

The US government has two tax incentives to purchase new Euroclinic   Examination Chairs and Podiatry Workstations.  Each  are explained below.

1.     Section 179 Accelerated  Depreciation     

2.     Section Section 44 ADA tax credit

 What is the Section 179 Deduction?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying Podiatry equipment, including   Euroclinic  equipment purchased or financed during the tax year in which they put the purchased equipment in to use. This means when you  buy  Euroclinic  examination Chairs or Workstations , you can deduct the ENTIRE purchase price from your gross income up to the stated IRS limitations.  For example, if you had paid taxes at a 35% tax rate and you purchased an  Euroclinic  Podiatry Examination Chair or Workstation for $6000.00, the tax savings could be $2100.00, making the Examination Chair or Workstation cost only $3,900.00.

This tax deduction is set to expire January 1, 2013.

What is Section 44 ADA tax credit?

A disabled access to the credit may be available to medical practices that have purchased   Euroclinic equipment  , because they enable such practices to facilitate access by disabled individuals. The credit is half the purchase price of the product up to $5,000 with a $250 deductible.

Click here to download a handout that explains the ADA Section 44  credit and Section 179 Accelerated Depreciation. This handout will also calculate an estimated cost of your MTI chair or table by using these two tax benefits.

What requirements does a practice need to meet in order to use the Section 44 ADA tax credit?

To qualify, the practice must meet at least one of the following qualifications:

1.     Annual gross receipts of the practice do not exceed $1,000,000.

2.     The practice employs no more than 30 full-time employees during the taxable year before the taxable year in which the credit is elected.

Combining the two tax incentives above if you paid $6000.00 for your Euroclinic Examination Chair or Workstation, the Section 44 ADA tax credit would save you $2875.00 and the Section 179 Accelerated Depreciation would save you an additional $1093.75, making your $6000.00 Euroclinic Equipment   cost you only $2,031.25.

*The material provided is for informational  purposes  only and is not meant to provide tax or financial advice. Please consult with your tax advisor. For the most up to date information, go to www.irs.gov.