Save on Your 2023 Taxes & Grow Your Practice in 2024
Adding equipment and services like a new therapy laser from Aspen Laser can help you save on your 2023 taxes and help you grow your business in the coming year.
How to Save on Your 2023 Taxes by Purchasing an Aspen Laser System Before December 31
There’s a section of the IRS tax code designed to help small businesses grow by giving them a break for investing in things that enable growth—for a medical and wellness practice. This includes new medical equipment like therapy lasers that allow them to offer new services and attract new patients.
Section 179 of the IRS tax code allows small businesses to deduct equipment that is purchased, leased, or financed during the tax year being filed—this means instead of waiting years to write off the depreciated value of equipment once it’s paid off, you can write off the cost in the year it was purchased.
A high-powered class IV laser therapy system from Aspen Laser is the perfect example of a capital equipment purchase to grow your business. Some or all of the equipment costs can be deducted from your taxes when you purchase your laser.
Important Update for Tax Deductions
The tax deduction limit was raised to $1,160,000 for 2023. Additionally, the bonus depreciation is 80% and also includes used equipment.
To take advantage of Section 179, complete Form 4562 when you file your practice’s 2023 tasks. You can review the 2022 version of Form 4562 and its filing instructions for more information about filing your business equipment expenses.
NOTE: You’ll need to use the final 2023 form, once available, when you go to file your business’s taxes.
Other Tax Deductions for Clinics with Laser Therapy Services
IRS R&D section 41
This section of the U.S. tax code allows businesses to deduct 20% of “qualified research expenses” from their taxes. Contributing to research in the field of laser therapy can be beneficial for your bottom line with this tax section. Learn more here.
IRS ADA section 44
This section of the U.S. tax code allows small businesses to write off expenses related to complying with the Americans with Disabilities Act (ADA). Meeting ADA requirements and improving accessibility in your clinic can give credit up to 50% on purchases up to $10,220, or a maximum credit of $5,000 in tax credits each year. Learn more here.
How a Cash-Based Laser Therapy Service Helps Your Practice Grow in 2024
As we enter the fourth quarter of 2023, it's time for businesses to examine their financial performance indicators and develop strong financial plans for 2024. The door is still open to maximize profitability for this calendar year, and it's an opportune moment to consider innovative business strategies to set the stage for continued prosperity.
In the current economic climate, every business can benefit from additional cash income. Practices that currently bill 50% or more to a third party should seriously consider incorporating a cash-based service into their practice. Cash programs, when properly set up and managed, can reduce practice overhead and increase net income. Reimbursement for cash-based services is always 100%, and no additional staffing is required for collections.
Cash-based services are also beneficial for patients whose health insurance does not cover the services they are seeking.
Laser Therapy as a Cash-Based Service
Whether new to laser therapy or adding a laser, the Aspen Laser is an ideal cash-based service. Patients are willing to pay for results. In comparison to other treatment modalities, laser therapy offers:
- Quick: Most treatments average ten minutes
- Painless: There is no pain with a laser therapy treatment
- Positive Experience: Most patients experience a “soothing warmth sensation.”
- Minimal Accessories: No messy gels are required, and no complex wires or harnesses are used; patients only need to wear safety glasses
- Affordable: Whether included as a bundled service or as a standalone treatment
- High Compliance: Patients are motivated to return when they experience pain relief and recovery
- Future: Patients are more likely to return when they experience new or recurring injuries or pain
- Referrals: Happy patients like to refer their family and friends
The Aspen Laser is a great addition to your practice. All lasers have clinical training, custom marketing, and the best warranty.
Trade-In & Trade Up
Many doctors ask about trading in their older model lasers for the newer, higher-power Aspen Laser models. We are more than happy to accommodate your requests.
Check out Apex Laser Series for the latest advancements in laser therapy treatments.
Get a Free 30-minute Consultation.
For the 2023 tax year, we've partnered with Quartermaster Tax to offer free 30-minute consultations to clinics. Contact us to learn more about filing your taxes and the credits you may be eligible for.
*This Practice Success Partner is a Certified Tax Strategist (CTS) and Chartered Advisor and works with thousands of medical professionals across the country.
This content was originally published in December 2019 and was last updated in November 2023.