Save money on your taxes with year end purchases

Posted by Christian Peacox on Nov 29th 2020

End of the year is always a good time to start thinking about and planning for your taxes. It’s important to take advantage of the current tax laws that allow small businesses to expense the full value of any spa equipment purchases in the current year rather than depreciating over time.

Day spa, plastic surgery offices, dermatologists, medical spa and other small businesses can deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means you can buy or finance your equipment on or before December 31st and still get your deduction even if you’re paying for the equipment over time.

All businesses that purchase, finance or lease new equipment during the tax year should qualify for the Section 179 tax deduction. There are limitations on the amount, so you should always consult with your tax professional to make sure you qualify.

This is a huge advantage for small businesses looking to manage cash flow. Imagine you can pay for the equipment over time, yet still get the advantage of the full tax deduction. The amount you save on taxes might exceed the annual, monthly payments, making it a “no-brainer” if you’re on the fence about if you should purchase now or wait.