Time is Running Out: Acquire Medical Equipment Before Dec 31st Can Save on Taxes

Now's the time for physicians to get into the holiday spirit and do a little medical equipment shopping. Why? To take advantage of this year's $108,000 Section 179 limit.

Las Vegas, NV (PRWEB) November 10, 2006 -- With this year's Section 179 limit set at $108,000, physicians may want to purchase that equipment they were debating about. The benefit? Get your shopping done before December 31st, and come April, you can count your eligible equipment acquisitions in this fiscal year. Even better if you can find a "do not pay until April 2007" financing program.

"Many medical practices operate on the principle that purchase costs for equipment and furniture must be depreciated over a number of years for tax purposes," says Jeff Russell, CEO of Oakridge Healthcare. "This, however, is often not the case," continues Russell. In order to stimulate economic growth, the Internal Revenue Service Section 179 states: "You may elect to expense part or all of the cost of Section 179 property that you placed in service during the tax year and used predominately (more than 50 percent) in your trade or business."

Before 2003, Section 179 deductions for each piece of equipment were limited to $25,000. With the Jobs and Growth Act of 2003, the Section 179 small-business expensing limits increased to $100,000. For this year, the amount is up to $108,000. The caveat here is that the item(s) must be in use by year-end. The expensing-limit increase will expire and return to its previous level of $25,000 after 2007 if there is no additional action by Congress.

Eligible business purchases include:
Medical equipment of all types, electronics and other (i.e. IPL, lasers, computers)
Software
Furnishings (i.e. treatment tables, chairs, cabinets)

Ineligible purchases include:
Real estate & Investment property
Property of all types held in trust or estates (including equipment, machinery, etc.)

Detailed information on Section 179 deductions can be found on the IRS web site with "Publication 946, How To Depreciate Property." As with any tax issues, you must consult with your tax adviser to make sure that you are taking full advantage of deductions allowed for your specific situation.

"If a physician has been delaying the purchase of medical equipment, this may be the ideal time to take the plunge. Since many equipment manufacturers are anxious to clear out stock by December 31st, the physician may not only get a great tax break, but a great deal as well," says Russell.

About Oakridge Healthcare
Jeff Russell is the President and CEO of the Oakridge Healthcare, which provides turn-key healthcare financing solutions to medical practices and equipment vendors throughout North America. We have the capacity to finance everything from a single treatment table to an entire $20 million medical facility. Our programs include: equipment leasing, term loans, Physician SBA loans, practice debt consolidation loans and working capital financing for physicians. For additional information, visit our website: www.oakridgehealthcare.com
Contact Information:

Jeff Russell
1-800-485-5759 x705
Oakridge Healthcare
www.oakridgehealthcare.com

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