For the 2022 tax year, the US Senate Finance Committee has extended Section 179, one of the biggest small business tax deductions available for purchasing and leasing equipment or software.
We’ve explained in the past how to leverage small business tax benefits with Section 179 in the past and the great news is that you can still use this big advantage in 2022!
The Section 179 deduction can have a substantial impact on your finances. You can write off all the qualifying business equipment or software you purchase for the 2022 tax year. Since being introduced in 2015, this deduction has continued to improve and now allows for a maximum deduction of $1,080,000 with a phase-out threshold of over $2.5M.
The Section 179 law allows for a depreciation percentage of 100% for qualified property acquired and placed in service. No longer do you have to write off a little at a time – you can write off the entire equipment purchase price for the year you purchased it!
The entire impetus behind this incredible tax incentive is to grow the American economy and help move your business in a positive direction. By motivating you to grow your business and invest in yourself, you can save money while the tax incentive is still active.
Plus, now qualified nonresidential real property improvements qualify under Section 179 including improvements to the interior and exterior or adding an HVAC, fire or security system.
Physical therapy practices are the perfect use case of Section 179 because they often need to make improvements to the clinic design and patient services being offered. For PT owners purchasing a NEUBIE device, HRV system, air purification system or modern gym solution it can practically cut the cost in half.
For example, a NEUBIE purchase’s first year deduction could shave over $6,000 off your total purchase price. It’s truly a game-changing tax saving for small businesses.
As of this publishing, Section 179 tax benefits are not guaranteed for the 2023 tax year, so be sure to take advantage of this incredible tax incentive while you can.
If you’re on the fence about the right timing to add the NEUBIE to your clinic – the answer is yesterday! For the rest of the year, the NeuPTtech team is standing by to answer any questions you may have and ensure you receive the best pricing and incentives available on any purchase for your private practice.
Visit the NeuPTtech Shop or contact the team to learn more about how to get started!
Disclaimer: NeuPTtech is not a tax professional and this blog is not intended to provide professional accounting advice. We recommend checking with your accountant or tax team to learn the best ways that Section 179 can benefit your business.