Henry Schein Financial Services, Melville, NY, is offering an array of financing and business solutions to practice owners, including leasing and financing equipment and technology, to help them take advantage of tax savings opportunities available through the recently enacted PATH Act. Signed into law by President Barack Obama on December 18, 2015, the Protecting Americans from Tax Hikes (PATH) Act increases the Section 179 deduction limit to $500,000 in equipment and technology on 2015 tax returns. The previous deduction limit was $25,000.
The Section 179 deduction reduces the after-tax costs of acquiring depreciable business property by accelerating the tax deductibility of all or part of the purchase price of qualifying purchases (equipment, technology, and off-the-shelf software). While the law is retroactive to January 1, 2015, practice owners have only the remaining days of 2015 to install equipment and technology in order for it to qualify in the current tax year. While the limit change is permanent, only items in use by the end of 2015 are considered tax deductible on 2015 returns.
“Henry Schein Financial Services offers practitioners the attractive financing costs that may help them take advantage of the potential tax savings opportunity the PATH Act presents starting this year, but time is of the essence,” said Keith Drayer, vice president of Henry Schein Financial Services. “Practice owners may also face higher financing costs next year which could result in a less favorable net cost on equipment purchases, computers, software, and furniture, all while struggling to balance technology costs.
“However, with favorable deferred payment options available through Henry Schein Financial Services, practices can start generating revenue by purchasing and using new equipment now, paying for it next year, while starting to obtain after-tax savings this year. Taking advantage of Section 179 now through the end of the year could represent a financial opportunity for health care practices, and Henry Schein Financial Services is here to help.”