How the Section 179 Tax Deduction Can Help Your Practice Save on Medical Equipment Purchases

As a healthcare provider, you know the importance of having top-quality medical equipment to provide the best care possible. But did you know there’s a tax benefit designed to make your equipment purchases even more affordable? If you're considering an investment in ultrasound machines, medical monitors, or any other vital equipment for your practice, the Section 179 tax deduction could offer you substantial savings.

Here’s what you need to know about Section 179 and how it can help your practice:

What Is Section 179?

Section 179 is part of the U.S. tax code that allows businesses to deduct the full purchase price of qualifying equipment in the year it’s put into service. Rather than depreciating the equipment over several years, Section 179 lets you take an immediate deduction, making it a popular tax break for businesses that want to maximize their savings on equipment costs.

How Section 179 Works for Your Practice

1. Immediate Tax Relief: Instead of gradually writing off equipment costs over a set number of years, Section 179 enables you to deduct the entire purchase price upfront. This immediate tax relief can have a significant impact on your year-end financials, lowering your tax burden and freeing up cash for other investments.

2. Who’s Eligible?: Almost any business that buys, leases, or finances equipment can qualify for Section 179, and that includes medical practices and healthcare providers like yours. Whether you’re looking to purchase ultrasound machines, medical monitors, or other essential medical accessories, chances are you’ll be able to apply this deduction.

3. Understanding the Deduction Limits: For 2024, the maximum deduction limit for Section 179 is $1,220,000 and this begins to phase out if total equipment purchases exceed $3,050,000. These limits are typically more than sufficient for most small and medium-sized practices.

4. Year-End Purchase Advantage: To qualify for the Section 179 deduction, your equipment needs to be purchased and put into service by December 31 of the tax year. This means that if you’re considering an upgrade or expansion of your medical equipment, now is the perfect time to make that purchase and take advantage of the potential savings before the end of the year.

   
   

How Much Can You Save?

Let’s look at an example to illustrate the savings potential:

• Equipment Purchase Cost: $50,000

• Section 179 Deduction: $50,000

• Estimated Tax Savings (at a 24% tax rate): $12,000

• Lowered Cost of Equipment (after Tax Savings): $38,000

In this example, by using Section 179, you can potentially save $12,000 on your tax bill. This savings can make a real difference in your practice’s budget, helping you reinvest in your operations or reduce costs in other areas.

Next Steps: Consult with a Tax Advisor

While Section 179 provides a valuable tax-saving opportunity, it’s always best to consult with your tax advisor to determine exactly how it applies to your specific financial situation. Your tax advisor can confirm your eligibility, assess your potential savings, and ensure your equipment purchases are properly structured to maximize your benefits.

Why Now? Don’t Miss Out on This Year’s Savings!

At SonoMed Services, we’re dedicated to supporting healthcare providers in equipping their practices with the latest medical technology. If you’re planning to purchase new equipment, Section 179 is a powerful tax tool that could provide significant savings—but only if your equipment is purchased and in use before December 31.

Let us help you find the right ultrasound machines and medical equipment to fit your needs and take advantage of this limited-time tax benefit. Contact us today to learn more about our products and how we can support your practice!

Take advantage of Section 179 and invest in the future of your practice today.