Act Now: Put Equipment Into Service Before Year-End

If you’ve been on the fence about investing in your DPC practice, now’s the time to act:

For the rest of 2024, you can still use bonus depreciation to deduct 60% of the cost of qualifying equipment in the year it’s placed in service.

This includes everything from new exam tables, ultrasound machines, electronic health record (EHR) systems, diagnostic equipment, and even office computers and tablets. All these items are classified as “qualified property” under current tax law.

But you must place the equipment into service in 2024. If you wait until 2025, you can only deduct 40% of the cost in the first year. In 2026, you’ll only be able to deduct 20%. The remaining balance will need to be depreciated over several years using the standard Modified Accelerated Cost Recovery System (MACRS), delaying the tax benefits, and putting a crimp in your cash flow.

Some other smart moves you can make:

Top off your 401(k) or solo 401(k) contributions. With IRAs, SEP IRAs, and HSAs you have until April 15th. However, the 401(k) contribution deadline is at the end of the year.

If you have a High-Deductible Health Plan, max out contributions to your HSA: $4,150 for individuals or $8,300 for families. HSAs provide triple tax benefits—contributions, growth, and withdrawals for medical expenses are tax-free.