Managing and maintaining a medical practice comes with risks — both financial and legal liabilities. Here are the top 4 reasons why utilizing refurbished medical equipment is a smart strategy to curb expenses while practicing safe medicine.
This month, we peeled back the layers of leveraging Section 179’s tax code — from understanding what it is, how to cash in on it, and when the qualifying timeframe is eligible to use the deduction.
To round out this educational series, we are highlighting how to go about financing and leasing equipment, as well as using the Section 179 calculator in order to estimate your potential savings.
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.
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:
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.
At this time of year, many people are busy thinking about travel plans for Thanksgiving to see family, as well as bracing themselves for holiday gift shopping. But for business owners and those responsible for the bottom line at their place of employment, they are busy thinking about closing out the year by maximizing tax savings.
Section 179 is an IRS tax code, which — in its very nature of being a tax code — can sound intimidating. However, the truth is, the code is pretty straight forward. This tax code simply enables businesses to use deductions on the full cost of qualifying equipment, either purchased or financed, during that calendar year.
Our healthcare industry is both a substantial contributor to the global health crisis, as well as deeply troubled by it. It is uniquely situated to lead a revolution on both a community level as well as a planetary level, from land development, food, chemicals, and energy usage.
Sustainable health advocates believe that endeavors to safeguard and increase our health will not be successful if we don’t direct concerted efforts toward ecological, social, and economic adversities.
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.
Surveys indicate that voters continue to be frustrated with inflated drugs prices, rising out-of-pocket expenses, and grim health insurance benefits.
Most projections indicate that Democrats will fall short of taking senate control next year, much less meet the 60-vote supermajority that is needed to pass Medicare for All (without a filibuster). Republicans haven’t been shy about sharing their intentions to unanimously vote against the bill.
The Democratic House has a progressive agenda regarding healthcare, but the laws presiding over healthcare are most likely going to stay as is.
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:
More and more, medical procedures are being conducted in outpatient facilities vs. an inpatient setting. Mammogram screenings and cataract procedures may not come as a surprise, but many patients would rather have their total joint replacement surgery done in ambulatory centers than in a hospital. This is because of the convenience factor, a lesser burden on the wallet, and overall easier experience.
The gap between inpatient and outpatient net revenue continues to close in. In the 2019 Hospital Statistics report, the American Hospital Association shared that hospitals’ 2017 outpatient revenue was $472 billion. By comparison, the inpatient revenue was nearly $498 billion.
