For the 2008 income tax filing, a medical facility can utilize Section 179 to deduct the full purchase price of as much as $250,000 in medical equipment from their taxable income
Louisville, KY (PRWEB) July 9, 2008
The Economic Stimulus Act of 2008, in accordance with Tax Code Section 179, can strengthen buying power of new medical equipment bought in 2008. This could make 2008 an attractive year for medical facilities to purchase medical equipment, according to Tim Jarm, Chief Operating Officer of DRE, Inc.
"For the 2008 income tax filing, a medical facility can utilize Section 179 to deduct the full purchase price of as much as $250,000 in medical equipment from their taxable income," says Jarm. "This is almost twice the amount that could be deducted the previous year, and potentially makes 2008 an ideal year to invest in new equipment."
In addition to having an increased deductable limit, Section 179 can also allow medical facilities to take advantage of a one time 50% depreciation bonus on equipment purchases beyond the deductible limit. Many medical facilities that purchase new equipment from DRE may be able to take advantage of Section 179 expensing. Equipment sold by DRE that could be eligible for Section 179 deductions includes anesthesia machines such as the DRE Integra AV-S, operating room lights such as the DRE Maxx Luxx II, and vital signs monitors such as the DRE Waveline Plus.
DRE acknowledges that filing for Section 179 deductions requires planning. 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.
Overview of Section 179
Section 179 can allow medical facilities to deduct from taxable income the total cost of medical equipment -- such as operating tables, monitors and defibrillators -- purchased and put into service this year. In 2008, with increases created by the Economic Stimulus Act, medical facilities can deduct the full purchase price of up to $250,000 in medical equipment, almost double the deductible amount allowed in 2007.
Medical purchases beyond the deductible limit may also be depreciated. Medical facilities that purchase equipment in 2008 may be able to depreciate 50% of costs for the first year of the equipment's use.
Limits apply to Section 179. Medical facilities interested in taking advantage of Section 179 should consult a financial advisor for further details.
About DRE Inc.:
DRE is a premier medical and surgical equipment supplier that provides a combination of new and professionally refurbished or used medical equipment to industry professionals around the globe. DRE offers value to doctors by providing the features and reliability they need while still fitting within their budget.