Reduce the Cost of a Decompression Table by $5,000

Posted on 17 Oct 02:25
Thought about getting a spinal decompression table, but concluded that the spend was simply out of your price range?  How would you like to lower the purchase price by a whopping $5000? Want to save an extra $5,000 off your taxes after having purchased a spinal decompression table for your practice? A disabled access credit may be available to medical practices that have purchased power tables that helps facilitates treatment for the handicapped.  This category of tables includes spinal decompression tables that utilize a motorized mechanism that helps disabled patients to more easily get on and off the table. The credit is discussed in Section 44 of the IRS code. To qualify, the practice must meet the following criteria: 1) Annual gross receipts of the practice may not exceed $1,000,000.00, or 2) The practice employed no more than 30 full-time employees before the taxable year in which the credit is selected. An eligible practice may elect to apply a credit against income tax. The credit is equal to 50% of the power table purchase price over $250.00 and not more than $10,250.00. Go to http://decompressionpros.com/section44.htm to learn more. Here’s an example to illustrate the savings: A doctor purchases a Decompression Table for $10,000 which meets the requirements of the Section 44 credit outlined above. The doctor earned $100,000.00 in taxable income and falls within the $31% tax bracket:
 

without credit

with credit

Taxable Income

$100,00.00

$100,00.00

Tax at 31%

31,000.00

31,000.00

Section 44 Credit (50% x $10,000)

0

$5,000

Net Tax Due

31,000.00

26,000.00

Additionally, by utilizing the Section 179 depreciation deduction, the practice can deduct $6,900 ($10,900 less the credit of $5,000) in depreciation over the table's tax economic life. This example illustrates the combined benefits of a  Section 179 deduction along with the Section 44 credit.
Cost of the table

$10,900

Section 44 Credit

5,000

Section 179 Deduction ($6,900 x 31% tax savings)

$2,139

Net taxable cost

$4,761

A doctor can buy a $10,900 table and only pay $4,761 cash out-of-pocket. That’s a savings of up to 55%. Are you ready to add spinal decompression to your practice?   Go to Decompressionpros.com for more information. Please remember that we are not tax specialists and that we are in no way guaranteeing tax deductions. Consult your tax advisor concerning the above specifications.