We have been readying ourselves here at E.I. Medical Imaging for the inevitable rush of year-end purchasing of our portable veterinary ultrasound systems. Every year at this time many companies or veterinarians have to get their purchases accomplished and their books cleared of monies slated for equipment. They want to get a fresh start on the new year and are busy readying themselves for tax season which is always a joy to prepare for as Spring arrives.
As a business owner in the veterinary world or as a livestock producer or in the other business world, you will be filing a tax return next year and December 31, has always been not only considered the end of the calendar year, but for many, the end of the tax year. This year 2013 carries with it some tax benefits (no, I am not a tax professional nor do I play one on television, so seek your own tax advice from a professional). Feed Lot Magazine recently came out with its own version of a year end tax planning and financial thoughts to end the year and I wanted to point out a specific section that might speak to buying a portable ultrasound system.
The section 179 expense election is $500,000 for 2013. It generally allows producers to deduct up to $500,000 of new or used machinery or equipment purchased in the tax year. There is a dollar-for-dollar phase-out for purchases above $2 million. The section 179 expense election is scheduled to revert to approximately $40,000 ($25,000 base amount adjusted for inflation) for 2014 unless Congress acts. The reduction in this provision greatly affects the ability for producers to reduce taxable income.
The portable ultrasound system has to be put into use by the end of the year which may mean it must be bought and received on or before December 31. Again, talk to your own tax professional on the regulations and how they might effect you and your business finances.
One other topic of conversation as it relates to tax and the use of portable ultrasound systems is the medical device tax. This tax has apparently been repealed or may be in the process of being repealed according to the latest negotiations in Washington. According to DotMed Daily News, the medical device tax is part of a deal. This may only be a part of the FDA and not a part of veterinary use so again check with your tax preparer for advice in this realm.
Currently E.I. Medical has extended its Holiday Special through and including December 20, 2013. We cannot guarantee delivery by December 31, but our inventory is such that we will have a good chance to make sure your unit arrives by the end of the tax year to take advantage of the tax savings. If you get in on the savings soon you can get in on the tax advantages! Contact your sales rep today for your purchase. Don't be a procrastinator on this one!
