By Keiter CPAs
Healthcare industry team leader shares insights on H.R.1
Jim Chinn, Keiter Tax Partner, discusses the impact of H.R.1 on healthcare practices in the article, “One Big Beautiful Bill Act offers practices new expansion opportunities”, featured in Physicians Practice® magazine.
Article Excerpt
“The first significant change for medical practices is the enhanced bonus depreciation for capital expenses. The new deduction Section 179 expensing cap doubles from $1.25 million to $2.5 million phasing out at $4 million in purchases up from $3.13 million for property placed in service post-2024. Additionally, the bill permanently restores 100% bonus depreciation for qualified property including equipment and certain nonresidential real estate acquired and placed in service after January 19, 2025.
This incredibly strong provision means that medical practices can expand their offices, add new offices, and purchase new equipment immediately while taking the 100% bonus depreciation in the year the assets are placed in service. Given the expenses related to new medical equipment and expansions, physicians could reduce their taxable income significantly while boosting cash flow.”
Article Highlights
- H.R.1 (OBBBA) has also made the Qualified Business Income (QBI) deduction permanent for pass-through business owners.
- One of the more controversial and complicated provisions in OBBBA is the new state and local tax (SALT) deduction caps.
- For physicians themselves, there are numerous personal tax provisions in the OBBBA which could also be beneficial. These include extending the 2017 Tax Cuts & Jobs Act standard deductions as well as new credits for charitable contributions and estate planning.
Interested in learning how the tax changes can benefit your medical practice? Contact your Keiter Opportunity Advisor or Email | Call: 804.747.0000
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More Insights from Keiter CPAsThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
