19 Oct Tax Tip: Start the New Year Off By Saving Thousands of Dollars With Section 179
Don’t forget about Section 179 if you are planning to purchase or lease optometry or ophthalmology EHR and practice management software, business equipment and machinery, or office furniture for your practice this year. Take advantage of the $510,000 tax deduction limit for “qualifying” equipment and computer software that was purchased and put into use between January 1 and December 31, 2017.
Section 179 FAQs
You never know when Section 179 will change, so get a head start and act now—2018 is just around the corner. Listed below are a few frequently asked questions to get you started. Always consult your accountant or tax professional for advice about tax deductions for your eye care practice.
What type of software qualifies?
Any “off-the-shelf” computer software, such as MaximEyes EHR and practice management software you purchase for your eye care practice, qualifies for the Section 179 deduction in the year you put the software into service.
What type of equipment qualifies?
Equipment, such as servers, computers, laptops, tablets, printers, scanners, routers, fax machines and other tangible personal property (new or used) qualifies for the tax deduction, as well as office furniture, machinery, and ophthalmic diagnostic equipment. You can take the Section 179 deduction for property you use for both personal and business purposes; however, you must use it for business more than 50% of the time.
How much can you save with Section 179 in 2017?
Section 179 benefits small to medium-sized businesses. Instead of deducting a portion of the expenses over the term of an asset’s useful life, you can deduct the full cost of equipment and software from your 2017 taxes up to a maximum of $510,000. This amount will phase-out dollar-for-dollar when the capital investment limit exceeds $2,030,000.
NOTE: First Insight does not guarantee that you will qualify for tax deductions, only that Section 179 allows for certain tax deductions for qualifying practices. Please consult your accountant or tax professional for advice.
When does Section 179 expire for 2017?
Section 179 for the 2017 tax year will expire midnight, December 31, 2017. Remember, you must purchase and put the software and equipment into use by December 31, 2017 to qualify.
What IRS depreciation form do you need to complete for 2017?
You will need to complete Part 1 of the IRS Form 4562 to claim your deduction for the Section 179 depreciation. To ensure that your property qualifies, refer to IRS Publication 946 (how to depreciate property).
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