The 2009 law allowed taxpayers to expense $250,000 in capital equipment/software purchases. The new bill raises the Tax Code 179 limit to $500,000, with the deduction phasing out dollar-for-dollar at $2 million (The 2009 limit was $800,000).
The opportunity exists to fully deduct a medical practices’ purchase of their equipment/software in 2010. For every purchase under $500,000, that customer can fully deduct from their “taxable income” the entire cost of the software. For any purchase above $500,000 and under $2,000,000, they can immediately deduct the $500,000, and then take a 50% bonus depreciation on the remaining amount.
Have questions? Contact Franklin Walker, Director of Programs and Practice Management, NCMS Foundation, at 919-833-3836 or FWalker@ncmedsoc.org.