Penn Veterinary Supply, Inc. - Since 1981

“Section 179 of the IRS code” can sound like a scary phrase, but it’s actually a really good thing for your practice. Chances are, you probably know what the Section 179 Tax Deduction is, but in case you’re not sure: the Section 179 Tax Deduction allows small businesses to deduct the full purchase price of qualifying equipment financed or purchased during the tax year, up to $1,000,000. So, if you add up the full purchase price of all equipment you’ve bought in 2019, you can deduct that number, up to $1,000,000, from your gross income on your taxes.

There’s a spending cap of $2,500,000 on 2019 equipment purchases. So once you spend $2,500,00 on equipment, your Section 179 Tax Deduction begins to be reduced on a dollar for dollar basis. This cap ensures that this is truly an incentive for small businesses to invest in themselves.

To find out how much the Section 179 Tax Deduction can save your practice, use the 2019 Section 179 Tax Deduction Calculator. You can also learn more about this incentive at section179.org.

So you’re looking to increase your 2019 Section 179 Tax Deduction and you’ve got some money to invest in equipment. Where do you begin? There may be times where the answer is obvious, but choosing which equipment to invest in can be difficult. There are so many different technologies out there and so many options.

We’ve got 5 questions for you to ask yourself when considering what new piece of equipment might be your best option.  

1. How could your practice better meet the needs of your clients?

A great way to decide what new service you could offer your clients is to listen to what they’re asking for. Do your clients ask for better dental services? Or maybe laser therapy services? What about ultrasound? If your clients are asking for it, that means that there’s a need and an opportunity!

You also want to pay attention to the services that you refer to other practices. Do you continually refer your patients elsewhere because your clinic doesn’t have the equipment necessary to perform the procedure they need?

2. Where could your practice increase revenue?

Offering new services is a great way to increase your revenue. Think of services that can easily be offered as an add-on to a wellness visit. A big one that might jump out is dental. If your practice isn’t currently offering dental services, you’re missing out on a great opportunity to increase your practice’s revenue.  Another area may be tonometry, especially for your aging patients.  A digital tonometer will quickly earn its keep if you begin checking IOP as a part of a senior exam while also providing valuable diagnostic information to catch glaucoma earlier.

This also goes back to our previous point about offering what your clients need. Think about the revenue you could be making by performing that laser surgery in-house that your client needs, rather than referring them to a specialist.

3. In what ways could your practice be more efficient?

Take a look around your practice and make note of any outdated equipment or equipment that has needed multiple repairs and may not be the most reliable. Make sure to pay attention to ALL of your equipment including scales, clippers, lighting, autoclave, otoscopes, and tables. Is it time to replace any of these? Using outdated or unreliable equipment can mean that your staff is taking longer than needed to perform their duties or even getting unreliable results, compromising the safety of your patients.  

Get opinions from the team members that use the equipment the most. Ask them their struggles and where they think your practice could use updating.  No one knows the needs of your practice better than them!  Maybe they’re struggling to get reliable results from your aging x-ray unit and could see their care improving with an upgrade to digital.  Don’t assume that’s out of reach.  There are options available for low to high volume practices.  If you don’t have at least one lift table in your practice, consider investing in one to save your backs!  Nobody should be lifting large dogs and climbing around on the floor with them isn’t much better.  A lift table makes for a much less stressful exam for everyone!

4. Where could your practice be more competitive?

Think about what services are offered in our area and which services aren’t. Are your clients driving long hours for certain procedures? How much client loyalty would you get if your practice could offer that procedure right where your clients are?

Offering a new service that isn’t available in your area could differentiate yourself from other practices in the area. You can also make your practice more competitive by investing in newer equipment that may be safer and create a better experience for your client’s pets.

5. Is there something you could offer that would improve client compliance or improve treatment outcomes?

Are there tools you don’t have in your practice that might help you demonstrate to clients more effectively what is going on with their pet?  Think ultrasound, thermography, stance analyzers,video otoscopes, digital dental x-ray, etc.  Sometimes seeing is believing and it might go a long way for your clients to ‘see’ what’s going on.  Other considerations are things like laser therapy - it’s often considered for joint pain, but it also can improve outcomes from other surgical procedures, dental procedures, and wound care.

The best thing about the decision process? You’re not alone! Penn Vet has a dedicated and experienced Equipment Team that’s ready to listen to your needs and support you in making the best decision for your practice. We’ll help you find the right piece of equipment based upon features like:

• Warranties that protect your investment
• Training that can create a smooth transition and improve the return on your investment
• Customer service that will be there when you need it
• Promotions that can save you even more money or add free accessories
• Quality to ensure your investment is worth it
• Compatibility with your existing equipment and procedures to create synergy in your practice and limit any surprises when you start to use your equipment

To get in touch with one of our Equipment Specialists, give us a call at 800-233-0210. Or you can fill out this convenient online Equipment Inquiry Form and we’ll get in touch with you at a time that’s best for you.