The Tax Gift that Keeps on Giving
It’s that time again – the holidays. Which means one thing is for certain – you are being inundated by retail sales and tax savings communications. However, few “time is running out” opportunities offer as much upside as Section 179, and you’d be doing you and your business a disservice if you didn’t take the time to understand the benefits and why now may truly be the best time to buy.
Section 179 of the IRS Tax Code allows businesses to write off the full purchase price of any qualifying piece of equipment in the year it was purchased or financed. Businesses can therefore lower their current-year tax liability versus capitalizing an asset and depreciating it over time for the benefit of future tax years. Section 179 was designed to help small businesses invest in themselves so that they are in a position to grow. For aesthetic businesses, new energy-based devices can be that highly lucrative investment to take them to the next level and Section 179 makes that investment easier.
Aesthetic businesses can deduct 100% of the cost of qualifying aesthetic technology. For the year beginning 2022, aesthetic companies can deduct up to about $1.08 million of the total cost of eligible technology. There is a cap of $2.7 million on the amount a company can spend on property as a whole in one calendar year.
For instance, Section 179 makes it worthwhile to purchase a fully loaded VirtueRF platform. The uniquely expandable RF microneedling technology has the option for three handpieces. The exponential revenue that comes from the ability to tackle the delicate area around the eyes or tighten along the body will more than make up for the incremental and discounted purchase of the ExactRF and DeepRF handpieces in addition to the SmartRF.
Already have a VirtueRF? Add a TetraCO2 and increase your RF Microneedling revenue per treatment by 50% by adding a no-downtime CoolPeel on top. A full face CoolPeel takes just ten minutes and can take your bottom line and your patients’ results to the next level. There is a reason why it’s everyone’s favorite combination.
Patients new and old will appreciate you bringing the newest technologies and services into your practice. Pain-free laser hair removal, multi-modality body treatments – these differentiate your business. Talk to your tax professional to understand your financial circumstances and how to take advantage of Section 179. Then, call Cartessa – our diverse portfolio allows us to start with your business goals and your current offerings and then determine what solution makes sense.
And don’t forget, to be qualified for this benefit, equipment needs to be put into service before the clock strikes midnight on Dec 31st…so NOW really is the time to put the order in for the new device you’ve been eyeing or expand your investment to maximize future revenue.
Have questions about Section 179, the promotions currently available, and our aesthetic technology? Contact us today!