The end of the year brings budget meetings and questions about tax savings. For small businesses, including independent pharmacies, purchasing new equipment is a major cost that significantly impacts the business’ cash position. IRS Section 179 helps businesses acquire capital equipment and benefit from considerable savings.
Independent pharmacies can utilize IRS Section 179 to deduct the full cost of capital assets, including equipment, hardware, and furniture, instead of depreciating them over their lifetime. Section 179 applies to qualifying equipment in the year it’s purchased, including financed and leased equipment. Pharmacies can deduct up to $1,000,000 per year using Section 179, making it one of the biggest tax breaks for independent pharmacies.
What qualifies for IRS Section 179?
Most equipment is included in IRS Section 179, including pharmacy hardware. Section 179 includes general business equipment and software. In fact, most equipment used for your pharmacy probably qualifies.
- Pharmacy management software
- POS software
- Pharmacy hardware
How do pharmacies use IRS Section 179?
It is simple for pharmacies to take advantage of IRS Section 179. Pharmacies can purchase or lease their necessary equipment like normal and use a special IRS form to claim the deduction. Equipment must be placed into service during the calendar year, and you must elect to take the Section 179 deduction when you file your tax return.
How can pharmacies take advantage of IRS Section 179?
It is important to consider taking advantage of IRS Section 179 as we near the end of the year. Pharmacies that need new software, hardware, or equipment can enjoy significant cost savings by purchasing or leasing their equipment before the end of the year and taking the deduction.
Section 179 can help pharmacies lower the cost of equipment and software and improve their bottom line. It can also help set independent pharmacies up for success in the year ahead, enabling them to purchase the latest solutions and any needed equipment.
TDS can help your pharmacy improve efficiency and patient care without breaking the bank. If you are considering switching your pharmacy management software or upgrading your pharmacy hardware, now is the time. IRS Section 179 lets you purchase TDS software and hardware at a significant reduction by claiming the tax deduction.
Contact us today with any questions about Section 179 and upgrading your pharmacy software and hardware.