Section 179, which specifies tax advantages for capital purchases, is now a permanent part of the IRS code, with the deduction level set at $500,000, says Timothy Petito, OD, who owns a private practice in St. Petersburg, Florida, and is also the director of professional relations for Marco. This is the time of year where some smart planning can help independent eye care professionals (IECPs) take advantage of the annual deduction, even by staging capital improvements over the months of December and January, for example. All tax planning decisions should be made in conjunction with a financial advisor or accountant.
Dr. Petito has been involved with a number of health policy boards and organizations, and seeing that he had to make transformative changes in his data collection prompted him to invest in some high-technology instruments. He reminds IECPs not to look only at the hard ROI – how many times an instrument must be used to break even with monthly payment – but to also look at the “soft ROI.” Dr. Petito quantifies that by three factors. Does the addition of this technology or instrument make you a better doctor? Does the acquisition improve the patient experience? Does it improve your efficiency? “If a piece of equipment is a home run on any of those three factors, it will also make you more money. If it’s a home run on all three factors, it will make you a lot more money,” he says.
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