Your Taxes: Big increase in expensing limits
You can now deduct up to $250,000 of the cost of certain property in the year it's placed in service, instead of depreciating it over several years.
The IRS has good news-make that great news-for doctors who own their own practices. Thanks to the Economic Stimulus Act of 2008, you can now deduct up to $250,000 of the cost of certain property in the year it’s placed in service, instead of depreciating it over several years. That doubles the amount of the initial write-off under the old limit ($125,000). The only caveat is that the $250,000 amount will be reduced if the cost of all “Section 179” property placed in service exceeds $800,000 in a given tax year. But even that upper limit is $300,000 higher than the old one of $500,000. So if you’ve got the urge to splurge on your practice, now’s the time.
