Take Advantage of 2023 Tax Benefits: ADA Credit and Business Expense Deductions!

In this article, we'll discuss potential tax benefits according to the United States IRS Sections 44 (ADA Tax Credit) and 179 (Business Expense Deductions), with examples of each.

About Section 44 - ADA 50% Tax Credit

Are you eligible for savings on your tax liability? Lifetimer International offers a range of elevation tables, including the LT-ME3 model priced at $4,299.00, that might qualify your medical practice for a disabled access credit under IRS Section 44. Here's what you need to know:

Eligibility Criteria:

ADA Benefit (Under IRS Section 44):

• Small businesses with total revenues of $1,000,000 or less in the preceding tax year or 30 or fewer full-time employees are eligible.
• Businesses can claim a tax credit of up to 50% of eligible access expenditures exceeding $250 but not exceeding $10,000 for a taxable year, for a maximum of credit of $5000.

Please note that businesses should consult with a qualified tax professional or accountant to ensure accurate and up-to-date information regarding their eligibility and potential benefits under these provisions, as tax laws and regulations are subject to change.

Sample Savings Scenario (Using our LT-ME3 as an Example): If your taxable income is $100,000.00 and you're in the 24% tax bracket, purchasing an elevation table like the LT-ME3 model could offer the following benefits:

For 1 Table:

*Assuming a 24% Tax Bracket	Without Benefits	With ADA Benefit
Taxable Income: $100,000.00	$24,000.00	$24,000.00
ADA Benefit (50% x $4,299):	$0	$2,149.50
Net Tax Due:	$24,000.00	$21,850.50

 

For 2 Tables:

*Assuming a 24% Tax Bracket	Without Benefits	With ADA Benefit
Taxable Income: $100,000.00	$24,000.00	$24,000.00
ADA Benefit (50% x $8,598):	$0	$4,299.00
Net Tax Due:	$24,000.00	$19,701.00

 

About Section 179 - Business Expense Deduction:

In addition to potential tax credits under IRS Section 44, there's another valuable avenue for tax savings that could significantly benefit your medical practice—Section 179 business expense deduction. This provision allows businesses to deduct the full purchase price of qualifying equipment in the year it's placed in service.

Section 179 Benefits at a Glance:

• Increased Deduction Limit: For the tax year 2023, the deduction limit for Section 179 is $1,160,000, allowing businesses to immediately write off the full cost of equipment purchases.

• Phase-Out Threshold: The deduction begins to phase out on a dollar-for-dollar basis after $2,890,000 in qualifying equipment purchases, making it accessible for a wide range of businesses, including smaller medical practices.

• Elevation + Portable Tables Qualify: Lifetimer International's range of elevation and portable tables, including the LT-ME3 model or even the Ultim-Lite, fall under the category of eligible equipment for Section 179 deduction.

Section 179 - Practical Example:

Let's consider a scenario where a medical practice purchases the LT-ME3 elevation table for $4,299.00. Assuming the practice qualifies for the full Section 179 deduction, the potential tax savings can be substantial:

For 1 LT-ME3 Table at $4,299:

*Assuming a 24% Tax Bracket	Without Deduction	With Deduction
Total Taxable Income:	$100,000.00	$100,000.00
Minus Deduction Amount: ($4,299)	N/A	$95,701.00
Total Savings:	$0	$1,031.76
Net Tax Due:	$24,000.00	$22,968.24

 

In this example, the practice stands to save $1,031.76 in taxes by taking advantage of the Section 179 deduction.

Take Action:

Browse our selection of Elevation Tables or Portable Tables and request a quote today!

Ready to enhance your practice and explore potential savings? Download IRS Form 8826 (rev. 2017) and consult your tax advisor for eligibility.

For more details or answers to your questions about our complete range of elevation tables, email Lifetimer International at contact@lifetimerint.com or call us at 503-283-7000.