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IRS Section 179

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Independent pharmacy owners are focusing on maximizing cash flow and minimizing current cash outlay in the lead-up to the expected DIR Apocalypse in early 2024. Investing in pharmacy automation equipment and technology can improve efficiency, accuracy, and patient safety, while also offering significant tax benefits under Section 179.

Section 179 is a powerful tax break that lets businesses write off the full cost of qualifying equipment in the year they buy it, whether they finance or lease it*.

Peter and his team have been working with RxSafe and independent pharmacy owners since 2012.

Benefits of the Section 179 Deduction

  • Improve Cash Flow. Section 179 can help pharmacy owners improve cash flow by taking advantage of a lease purchase or financing to minimize upfront costs.
  • Reduce Federal Tax & Quarterly Income Tax Estimates. Section 179 may provide Federal income tax savings, typically in early 2024. Additionally, it may reduce quarterly income tax estimates that are due in 2024 and January 2025.
  • Business Impact. Pharmacies that adopt adherence packaging technology can boost revenue, attract more patients, expand their service offerings and scale their compliance packaging business.

There’s still time to take advantage of Section 179! Equipment that is delivered, installed, and operational in 2023 may qualify.

Fill out this form if you’re interested in finding the right adherence technology for your pharmacy.

How Does Section 179 Help Pharmacy Owners?

Purchasing adherence packaging equipment can represent a significant cash outlay for many pharmacies. Taking the Section 179 deduction can significantly impact the feasibility of purchasing pharmacy automation equipment.

Peter Davison from Advantage Financial Services explains how Section 179 can enable you to depreciate the cost of automation equipment in its first year of service, saving up to $68,450 in taxes.

Offset the Cost of Acquiring Equipment

Businesses can deduct the full cost of qualifying equipment purchased under an Equipment Finance Agreement (EFA) or a $1.00 purchase option lease, just like they can with cash purchases, thanks to Section 179.

Section 179 allows businesses to deduct the full cost of qualifying equipment in the year they purchase it, subject to certain limits.

Calculate Potential Savings

Use RxSafe’s handy calculator to figure out the potential tax savings available through this program.

What Qualifies for the Section 179 Deduction?

Automation equipment, including robotic dispensing technology, adherence packaging machinery and optical inspection systems, are eligible for the Section 179 deduction. See a list of qualifying Section 179 equipment here.

Talk to an Expert

Always consult with a tax professional to determine if you qualify for these deductions and ensure you are maximizing the benefits of Section 179.

Disclaimer: This content is for informational purposes only and does not constitute financial or tax advice. Always consult with a tax professional to determine the best financial decisions for your business. * Lease it assumes it is a lease purchase structure.