Practice Management

1. Possible tax credits are available for purchases of equipment such as hydraulic tables! Therapists may benefit by Section 44 Disabled Access Credit (Form 8826) which applies to costs incurred by small businesses to comply with the applicable requirements under the Americans With Disabilities Act of 1990. In addition to access expenditures such as ramps, the definition includes "To acquire or modify equipment or devices for individuals with disabilities." These expenses must meet the standards issued by the Secretary of the Treasury.

   To qualify as a small business the practice must meet the following requirements: the annual gross receipts for the preceding year did not exceed $1 million or had no more than 30 full-time employees during the preceding tax year.

   If you work with clients who fit into this category (such as physically challenged or elderly), then you could be eligible for a rebate. Essentially the credit works this way: Take the total expenses, subtract the minimum amount (which as of this writing is $250) and then multiply that amount by 50 percent. For instance, let's say that a table costs $4000. Deduct the $250 to get a subtotal of $3750. Multiply that amount by 50 percent and the total credit available is $1875. Thus although the table costs $4000, the actual out-of-pocket cost for the table is only $2125. By the way, this $2125 gets listed as a deductible business expense on your tax return.

   The maximum annual purchase limit is $10,000 so the maximum credit available is $4750. This credit can only be applied to reduce an existing tax liability down to zero, and not to the point where the business would show a loss.