End Of The Year Is Here Don't Let Money Set On The Table

End Of The Year Is Here Don't Let Money Set On The Table

Don't let another year slip away without understanding the differences and the benefits of tax credits and tax deductions.   Read further for a brief overview f the differences between credits and deductions and how you may be able to benefit from them.

First off I am not an accountant so you will want to talk to your accountant to make sure you qualify and that you maximize all benefits possible.

Many doctor's purchase equipment and use the tax deduction and think it is the same as the tax credit but these two things are very different.

A tax deduction is when you incur a valid business expense. This expense is subtracted from your business revenue to determine your profit, which is the amount against what you are taxed.

Come consider a tax credit to be more valuable because it directly offsets against tax that you owe. So if you owe 5000.00 in taxes and you have a 3000.00 tax credit you only have to write a check for 2000.00 instead of 5000.00. See how nice that can be for your benefit?

At the time of this blog the three main criteria's that must be met to qualify for the ADA tax credit are

1. Your business may not have more than 30 full time employees in the preceding year.

2. Your business gross receipts may not exceed one million from the preceding year.

3. Your business must purchase equipment that allow patients with disabilities access to care. Most chiropractic tables with high low or elevation features qualify.

Figuring out the credit is easily calculate on IRS Form 8826. I know I said easily and tax form in the same sentence but it really is an easy form. You will take the cost of the qualifying equipment subtract 250.00 then multiply by 50% and that is the amount up to 5000.00 that you are able to apply as your credit.

Final things to keep in mind are that the max amount of the credit is 5000.00, purchases need to be made during the calendar tax year and that we are NOT your accountant so verify your eligibility with your personal accountant.

Look forward to working with you on your equipment needs. 

1st Nov 2019 Karen Sweigart-Harris

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