Tax Benefits of Purchasing Equipment from Da Vinci Medical

Small businesses may qualify for certain tax incentives when investing in eligible capital equipment. Below are three commonly referenced sections of the Internal Revenue Code that may be relevant. This information is provided for general educational purposes only and should not be considered financial or legal advice.

Section 44: Disabled Access Credit

This credit is intended to help small businesses offset costs associated with improving accessibility in accordance with the Americans with Disabilities Act (ADA). Businesses may be eligible if they had:

  • $1 million or less in gross receipts in the prior tax year, or
  • 30 or fewer full-time employees during the prior tax year.

The credit may equal up to 50% of qualifying access expenditures that exceed $250, with a maximum credit of $5,000. Eligible access expenses may include modifications, equipment, or services intended to improve access for individuals with disabilities.

Section 179: Deduction for Capital Equipment

Section 179 may allow small businesses to deduct a portion of the cost of qualifying capital equipment in the year it is placed into service. The deduction limit and percentage may vary by tax year. As of current guidance, businesses may deduct up to 80% of the equipment cost, up to an IRS-specified cap.

Section 41: Credit for Increasing Research Activities

This section may provide a credit for businesses that invest in qualifying research and development activities. In some cases, introducing new technologies or processes may be eligible, subject to a formal evaluation. Businesses may also have the opportunity to claim the credit retroactively for up to three prior tax years.

For a personalized evaluation of potential small business tax benefits, consult a qualified tax advisor or visit www.quartermastertax.com to schedule an informational consultation.

Disclaimer:
This material is for informational purposes only and does not constitute legal, tax, or financial advice. Eligibility for tax incentives varies. Businesses should consult with their tax professional to determine which deductions or credits may apply to their specific circumstances.