A disabled access credit may be available to medical practices who have purchased power tables to enable such practices to facilitate the handicap.

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 or
2) The practice employed no more than 30 full time employees during the taxable year before 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.

Let?s take an example. Suppose you own a Zenith Model #210 that you bought in 1973 for $1245. You could sell that for about $800, as is. You want to replace that old Zenith with a brand new Zenith Thompson table with 4 pneumatic drops, air compressor, and all the other bells and whistles. Total cost = $12,507.

Since the new Zenith is a Hylo,(New or used Hylo ,Elevation or Hylo & Elevation tables qualify) it would qualify for the ADA tax credit, so you would have a tax credit of $5,000 ($10,250 - $250 min. X 50% = $5,000). The remaining balance ($12,057 - $5,000 = $7,057 X 31% US & 8% state tax = $2,752) will give you another $2,752 in tax savings. Add your old table sale ($800), your ADA tax credit ($5,000), and your tax depreciation ($2,752), and you get $8,552. Which means that the table actually cost you $3,505! Keep that new Zenith for about 5 years and it will resell for about $7,200. So if you don?t want to wait 25 years to change tables this time, you stand to make $3,700 or so on your next new adjusting table.

When you stop to think about it, it?s a 'No Brainer', isn?t it?

By the way, if any of the above figures seem unreal to you, your CPA will verify them for you. Access Equipment Corp or Chirocity cannot begin to interpret tax laws or tell anyone how to utilize the tax codes. But we can certainly make you aware that there are new codes and make available a copy of these codes.