Tax Credit Information
ADA Tax Credit – How it works:
The information below is for informational purposes only – we do not make any claims of eligibility. Please consult your accountant.
Here are the basics:
The section 44 (ADA Tax Credit) is available to eligible small businesses who can receive a credit of 50%, up to $5,000, of eligible access expenditures. Your purchase must exceed $250, but no more than $10,250. Use tax form 8826 to claim your credit.
You purchase a DynaROM system that costs $10,250. Subtract $250 (because the eligible tax expenditure must exceed $250). = $10,000. 50% of $10,000 = $5,000. Your Tax Credit for a Full MyoVision system at $10,250 is $5,000.
In addition, you can continue to deduct any interest paid on the loan per year.
What is the ada tax Credit?
The ADA – or American with Disabilities Act – is a credit that can be applied to a business tax return due to expenditures incurred toward making a facility accessible for disabled persons.
How does myovision qualify?
The MyoVision system is primarily a visual-only system, qualifying under the visually impaired.
How much of a credit will I get?
You will receive 50% of the amount of eligible access expenditures for any taxable year the exceeds $250, but no larger than $10,250. The maximum credit allowed is $5,000.
Can I still Finance the equipment?
Yes, you will still be able to write off the full amount on your taxable income, even if you haven’t paid any money out yet.
Section 179 Tax Deduction – How it works:
Section 179 of the IRS Tax Code allows a business to write off the full purchase price of qualifying equipment that was purchased or financed in the current tax year – rather than writing off depreciation over time. The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.) Learn more about the section 179 tax credit.
*Contact your tax adviser for more details as situations may vary*