The Small Business Lending Fund Act provides incentives for small business lending and makes changes to the Tax Code 179 that medical practices and their financial management team should be aware of. The tax code 179 Limit is now $500,000 for 2010 and 2011, up from $250,000.

The 2009 law allowed taxpayers to expense $250,000 in capital equipment/software purchases. The new bill raises the Tax Code 179 limit to $500,000, with the deduction phasing out dollar-for-dollar at $2 million (The 2009 limit was $800,000).

The opportunity exists to fully deduct a medical practices’ purchase of their equipment/software in 2010. For every purchase under $500,000, that customer can fully deduct from their “taxable income” the entire cost of the software. For any purchase above $500,000 and under $2,000,000, they can immediately deduct the $500,000, and then take a 50% bonus depreciation on the remaining amount.

Have questions?  Contact Franklin Walker, Director of Programs and Practice Management, NCMS Foundation, at 919-833-3836 or [email protected].