Give your practice the gift of growth through tax savings
Use Section 176 Tax savings To Grow Your Business
As a practice owner it is important that you make the best financial decisions for your business. That includes knowing when to invest in new technology. Here’s a counterintuitive thought, the IRS wants to support the growth of your business. It’s true! The IRS wants to see businesses grow. As such, they give entrepreneurs many opportunities to save on taxes while they seek growth.
Why would the IRS do this? It’s the “give a little get a lot in return” philosophy of tax revenue generation. The IRS gives in the short term to reap a larger benefit in the future. Saving on taxes in the short term allows entrepreneurs to better manage cash-flow. In turn, a business can reinvest the tax savings to spur growth through the offering of more or better services. Subsequently, as businesses grow revenue tax collections grow.
This year, the best time to invest may be now, before the year ends. That’s because Section 176 of the tax code allows businesses to deduct the cost of certain property as an expense when the property is first placed in service.
For a medical aesthetics practice this property can include equipment such as, Inmode equipment, Sciton lasers, RF microneedling devices, EmSculpt Neo, EmFace, Coolsculpting Elite, treatment tables, HVAC units, and more. You can even use Section 176 expense deductions for sport utility vehicles placed in service in tax year 2023. Note, not every vehicle qualifies. The max SUV deduction in 2023 is $28,900. In 2023 the maximum deduction for all Section 176 qualified deductions increased to $1.16 million.
By taking advantage of Section 176 tax code savings, you can set your practice up for growth in 2024 through improved, enhanced, or new service offerings. If you’ve been waiting to purchase equipment you need to offer your clients the services and treatments they demand and expect, Section 176 may a worthwhile consideration.
Take our advice, talk to your accountant today!
💌 Are you ready to take on an investment partner to help you grow your medical aesthetics practice? If so, we are here to partner with you every step of the way. Fill out the contact form or send us an email at info@baraesthetics.com and we will schedule a call to discuss the possibilities.
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