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Posted on 06. Oct, 2010 by .

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Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means if your practice purchases equipment (i.e. software such as Practice Director), you can deduct the full purchase price from your gross income. Typically the deduction is over a period of time instead of deducting the full amount in one year. In this economic downturn, the U.S. Government created this incentive to encourage businesses to buy equipment and invest in themselves.

Who is eligible?

All businesses that purchase or finance less than $2,000,000 in business equipment during the tax year 2010 should qualify for the Section 179 Deduction.

What can I purchase?

Most tangible goods, including “off-the-shelf” software, qualify for the Section 179 Deduction. See a list of qualifying equipment. For your practice, this could be new software, equipment, or other needs.

Are there limits?

In 2010, the total amount written off is $500,000 and the total amount of equipment purchased is $2,000,000. The deduction begins to phase out dollar-for-dollar after $2 million, which makes this deduction primarily for small and medium-sized businesses.

For more information, visit www.Section179.org or contact us.

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