SECTION 44 DISABLED ACCESS CREDIT
A disabled access credit (Section 44) may be available to medical practices who have purchased POWER tables to enable such practices to facilitate the handicapped.

The credit is discussed in Section 44 of the IRS code. To qualify, the practice must meet the following qualifications:

1. Annual gross receipts of the practice do not exceed $1,000,000.00;
2. The practice employed no more than 30 full time employees during the taxable year in which the credit is selected.

An eligible  practice may elect to apply a credit against income tax. The credit is equal to 50% of the power table purchase price that is over $250.00 and not more than $10,250.00.

EXAMPLE
A doctor purchase a Hylo or Elevation table for $4,250.00 and your tax advisor agrees that the expenditure meets the requirements of the Section 44 credit. Assume the doctor has $100,000.00 in taxable income and is in the 31% tax bracket.

	Without Credit	With Credit
Taxable income	$100,000.00	$100,000.00
Tax at 31%	$31,000.00	$31,000.00
Section 44 Credit (50% x $4250.00)	$0.00	$2,125.00
Net tax due	$31,000.00	$28,875.00

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In addition, the practice can deduct $2,125.00 (4,250.00 less the credit of $2,125.00) in depreciation over the tables tax code economic life by utilizing the Section 179 deduction.

Utilizing the Section 179 deduction along with the Section 44 credit, the net out-of-pocket cost for the $4,250.00 table would be $1,466.25:

EXAMPLE

Cost of the table	$4,250.00
Section 44 credit	$2,125.00
Section 179 deduction ($2,125.00 x 31% tax savings)	$658.75
Net cost	$1,466.25

A doctor can buy the table at a cost of $4,250.00 and will only pay cash out-of-pocket: $1,466.25.

>> CONSULT YOUR ACCOUNTANT TO MAKE SURE YOU QUALIFY <<