When you purchase equipment or devices for use by individuals with disabilities (the equipment does not have to be used exclusively by disabled individuals), it may qualify for a Americans With Disabilities Tax Credit as discussed in Section 44 of the IRS tax code. The Facet Release Table top surface is only 19" from the floor which allows easy transfer of a disabled person from a wheelchair.
The ADA Tax Credit equals 50% of the equipment purchase price less $250.00. If your small business meets the "income level" and "number of employees" requirements for this tax credit, your equipment purchase can be very reasonable. Please consult with your tax advisor to see if you qualify. The ADA Tax Credit alowable is currently imited to $10,500 per year.
Since both the SC-DC110 and the SC-DC220 Facet Release Table makes it easier to treat a disabled person, your equipment may qualify under Section 44 of the IRS Code; the Americans with Disabilities Act. The Disabled Access Credit is a 50% tax credit available to any small business purchasing equipment that makes it easier for a disabled person to have available to them normal day-to-day functions including chiropractic treatment. Taxable year purchases that exceed $250 but not more than $10,250 may be eligible to receive a tax credit of up to 50% (not to exceed $5,000).*
To obtain the required IRS Tax Form 8826 and instructions, visit www.irs.gov/form8826.
Example Calculation Using Sections 44 and 179 together.
Equipment Cost for (Introductory Price) $4,995.00 $7,595.00
Excludable Amount $ 250.00 $ 250.00
Amount greater than $250 $4,745.00 $7,345.00
ADA Tax Credit of 50% $2,372.50 $3,672.50
Amount Eligible for Sec 179 Treatment $2,622.50 $3,922.50
Tax Savings at a 34% Effective Tax Rate $.891.65 $1,333.65
Total Savings $3,264.15 $5,006.15
Net Cost of the Equipment $1,730.85 $2,588.85
So, if your effective tax rate is 34%, AND you are eligible for these tax credits and deductions, in the first year, the new SC-DC110 Facet Release Table, priced at $4,995.00 actually costs you ONLY $1,730.85!
OR, your new SC-DC220 Facet Release Table, priced at $7,595.00 actually costs you ONLY $2,588.85!
*A "small business" for this purpose has total revemues of $1,000,000 or less and 30 or fewer full-time employees both in the previous tax year. Always consult your CPA or tax advisor and attorney before making decisions that affect your business, tax planning and Income Tax Filing. Synergistic Concepts Ltd. cannot and does not interpret tax laws, provide tax advice or advise anyone how to utilize the tax codes.