Changes, Updates and Insights for Section 179 in 2019

179 tax code

As a follow-up to our recent Section 179 blog post, explaining the ins and outs of the tax code, it’s also important to understand updates for this calendar year.

2019 Limits for Section 179 Tax Code

For 2019, the deduction maximum cap was increased to $1 million, a significant incentive. This allows businesses to deduct the full expense of their medical equipment off of their taxes this year, which can be quite impactful for the end of year financials.

This deduction is valid toward acquiring new and used equipment, as well as software that is “off the shelf.” It also must be financed or purchased, and put to use between January 1, 2019 and December 31, 2019 by midnight.

Here is a Section 179 free download of the Form 4562 needed to utilize this deduction.

Tax Breaks for Small and Medium Sized Business

The 179 tax code originated to help support small to medium-sized businesses. While the cap for total deductions is $1 million in 2019, the limits for the total amount of equipment purchased this year is $2.5 million. Deductions ultimately go away completely once reaching $3.5 million in purchases.

The Future Looks Bright

Historically, Section 179 has had a lot of twists and turns. However, in the past few years, the U.S. Congress put an end to the ongoing changes and mandated that the Tax Deduction limit is now permanent. The limit was increased to $1 million indefinitely beginning in 2019. This is comforting for small and medium sized businesses, so they can plan accordingly and take advantage of the deductions earlier in the year.

Section 179 Qualified Materials

Nearly all types of business equipment that a business buys or finances should qualify for the Section 179 deduction. The equipment itself does not need to be new, but it must be new to the business for the calendar year when it is being used as a deduction.

Here is the list of material goods that generally qualify, according to the official Section 179 website:

  • Equipment (machines, etc.) purchased for business use
  • Tangible personal property used in business
  • Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (see Section 179 Vehicle Deductions)
  • Computers
  • Computer “Off-the-Shelf” Software
  • Office Furniture
  • Office Equipment
  • Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
  • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
  • Certain improvements to existing non-residential buildings: fire suppression, alarms and security systems, HVAC, and roofing.

Section 179 Financing

Many businesses are finding the Section 179 Qualified Financing  to be an appealing possibility, particularly with a variety of anticipated Federal Discount Rate increases on the horizon.

With reasonably priced monthly payments, and minimal or no money down needed beforehand, financing equipment and leveraging Section 179 can add value to your business’ bottom line now and into the future.

If you would like to talk about utilizing the tax code deductions on refurbished medical equipment, contact our team at Auxo Medical — we would be happy to help assist you.

Refurbished Medical Equipment: Forecasts and Trends

Refurbished Medical Equipment

There has been a worldwide increase in demand for refurbished medical systems over the last decade.

The global market for refurbished medical equipment is anticipated to grow more than $16 billion by 2024 and will grow at a CAGR of more than 10% in this forecast period.

More and more hospitals, especially new facilities, are opting for different options in order to shave down the costs of capital investments.

Specific components accelerating the market growth includes the pressure for better overall cost efficiency within healthcare organizations, sitting on a sizable amount of inventory including older or used medical devices, the popularity of medical tourism rising, and private healthcare organizations gaining momentum.

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How Value-Based Incentives are Surging Outpatient Care

Outpatient Care

Modernized clinical practices, shifting patient priorities, and monetary enticements are some of the driving factors in boosting outpatient services. According to Deloitte Insights, based on data from an AHA annual survey, hospital revenue from outpatient services increased from 30% to 47% between 1995 and 2016.

To gather a comprehensive understanding into what is steering expansion in outpatient usage and a decrease in inpatient care, using Medicare data of claims between 2012 and 2015, the Deloitte Center for Health Solutions performed an analysis and discovered three valuable insights:

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Strategies to Improve the Well-Being of Healthcare Employees

Strategies to Improve the Well-Being of Healthcare EmployeesWith increased employee turnover rates, compromised patient care, and elevated rates of errors, healthcare organizations are driving strategies to boost the well-being of their medical staff — including physicians, nurses, and support staff.

In this article we will cover initiatives to holistically improve the well-being of those who dedicate their time and talents to caring for others. But first, let’s review the hard truth about the state of our medical community’s wellness.

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5 Ways Virtual Reality is Enhancing Healthcare

Virtual RealityVirtual Reality (VR) technology is paving the future for people, and patients, in more ways than you may realize. Here are five examples of how VR is enhancing the healthcare landscape.

Reducing Chronic Pain

Chronic pain is a widespread medical condition, over 10% of Americans — 25 million people — battle it daily, and use pain medications in search of relief and a better quality of life.

Opioid addiction has become an epidemic in the United States, and takes the lives of nearly 100 people every single day. Healthcare professionals are in search of alternative solutions that are safe and non-habit forming.

Virtual Reality is one possible therapy that could offer relief, as it has been documented to help reduce pain by 25 percent. Evidence shows that “Medical VR” — virtual reality therapy — can prohibit the brain from processing pain, particularly for patients who are admitted in the hospital. The domino effect is that patients can have a shorter stay, continue healing at home, which ultimately reduces the cost of healthcare.

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Telemedicine vs. Telehealth — What’s in a Name?

Telemedicine vs. Telehealth — What’s in a Name?William Shakespeare, the famous writer of “Romeo and Juliet,” did not believe that names should matter too much.

He wrote Juliet’s line to say:

“What’s in a name? That which we call a rose

By any other name would smell as sweet.”

But many of us would disagree with Mr. Shakespeare on how much a name matters, including the use of healthcare lingo.

Our collective medical community is comprised of both telemedicine and telehealth — and in many cases — the terms are used interchangeably. But, do they mean the same thing? That is a topic of debate. Many believe there is a distinction.

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Big Data Analytics in Healthcare — Predictions on Growth

Big Data Analytics in HealthcareAccording to a recent survey in January 2019 by NewVantage Partners, nearly 80% of healthcare execs are investing more in Big Data. In addition, they’re increasing investments in artificial intelligence (AI) as well. Over 70% of healthcare executives reported that their organizations are accelerating investments in Big Data analytics and AI, citing disruptive forces and industry competitors as major motivators for increasing spending.

These survey insights seem to be an accurate preview of the latest research study, titled, Big Data Analytics in Healthcare Market.” In 2017, the Global Big Data Analytics in Healthcare Market was valued at $16.87 billion, and is projected to reach $67.82 billion by 2025, growing at a CAGR of 19.1% from 2018 to 2025.

Big Data’s commanding influence by key players include All Scripts, Cerner, Dell EMC, Epic System Corporation, GE Healthcare, Hewlett Packard Enterprise (HPE), International Business Machines (IBM) Corporation, Microsoft, Optum, and Oracle Corporation.

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Blockchain Predictions in Healthcare

Blockchain Predictions in Healthcare The ‘Blockchain in Healthcare Today’ review board discussed their major predictions for the next 12 months. Based on their responses, here are 10 significant themes for the future of blockchain in healthcare.

  1. Blockchain will become an essential part of consent management in healthcare

Currently, consent is stored in provider’s electronic health records and hospital record departments. Consent is procured for every procedure and/or at each patient visit. There are startup agencies who are innovating the consent process in a radical way —storing patient consent for data exchange, privacy

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Healthcare Disrupters

Healthcare disruptors

dis·rupt

verb

  1. interrupt (an event, activity, or process) by causing a disturbance or problem.
  2. drastically alter or destroy the structure of (something).

The evolution of healthcare is what it is today because of disruption. Innovators, inventions, trial and error, technology advancements, clinical trials — they all play a role in progressing as a global sector.

Behind the significant milestones within healthcare are people…the disrupters.

Here are six of the most influential people, drastically disrupting healthcare, as we know it today. This article highlights key influencers culled down from a much longer list of 100 influential people by Modern Healthcare.

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