Medical facilities will get relief on capital equipment purchases in 2012 and 2013. It was previously reported that large decreases in deduction limits and depreciation percentages would take place this year. However, H.R. 8: The American Taxpayer Relief Act of 2012 (the Fiscal Crisis Bill) is now extending these limits.
Section 179 Deductions as defined by H.R. 8 effective Jan. 1, 2013:
- 2013 Deduction Limit = $500,000
- 2013 Limit on Capital Purchases = $2,000,000
- 2013 Bonus Depreciation = 50%
The previous 2012 limit ($125,000 deduction) has now been raised to $500,000. Any 2012 purchases will be retroactively credited, so qualifying purchases you made in 2012 can now take advantage of the new, higher deduction limits.
Prior to the passing of H.R. 8, the Section 179 limit was expected to be reduced from $125,000 to $25,000 and the 50 percent bonus depreciation was to be eliminated.
Section 179 is the tax code that allows medical professionals to deduct the full purchase price of medical equipment from their gross income during a tax year. This deduction is applicable to DRE’s high quality new, used and refurbished medical and surgical equipment.
Please visit Section179.org to use the convenient deduction calculator to view how much you can add to your bottom line this year.*
*DRE does not endorse any tax filing method and recommends that medical facilities consult a financial adviser to confirm that filing for Section 179 deductions is appropriate.
