How Can RxSafe and Internal Revenue Code Section 179 Transform Your Independent Pharmacy Business?
Internal Revenue Code Section 179 delivers a major tax benefit to businesses and individuals by providing up to $500,000 per year of accelerated depreciation (a law made permanent with the passing of the PATH Act in 2016). This means that when pharmacies acquire the RxSafe 1800, both productivity and therefore profitability are immediately increased, and that is transformational for any business.
What? The Tax Code is Not Boring?
Tax deductions come down to one thing: money! And cash flow is what pays employees, provides products and services to customers, and fuels business. At RxSafe, we know that taking advantage of available tax deductions means independent pharmacy owners can experience automation technology that can enhance productivity and profitability.
How Can an Independent Pharmacy Owner Learn More About Tax Advantages?
Peter Davison of Advantage Financial Services has been working with RxSafe and independent pharmacy owners for over a decade. In a recent podcast, together with Trey Crawford of C &C Drugs in Laurel, Mississippi, Peter explains how independent pharmacies can benefit from the Internal Revenue Code Section 179 tax deduction to offset the capital expense of pharmacy automation technology. Not only do Peter and Trey explain how Section 179 works, they provide easy-to-understand scenarios that clarify the process to realizing immediate profits.
What About the Initial Cash Outlay in Buying or Leasing New Equipment?
As Peter and Trey describe, purchasing capital equipment is a significant cash expense for most independent pharmacies. No matter how great the return on investment due to the many-faceted features of the RxSafe 1800, the purchase decision must take into account the business’s ability to make such a capital purchase. The Internal Revenue Code Section 179 deduction can significantly reduce the purchase price of pharmacy automation.
RxSafe is About More Than Pharmacy Automation Technology
Podcast host Todd Eury remarked that RxSafe is well known for its products’ efficiency, and quality. RxSafe’s growth, commitment to pharmacies in different sectors, such as specialty and long-term care, and dedication to community is impressive. However, if a pharmacy owner cannot pay for it, the technology cannot be leveraged into profits. “If you don’t have cash flow, if you can’t keep the lights on, it’s all for nothing because you can’t support your employees or, more importantly, your patients,” Eury says.
IRS Section 179 in a Nutshell
In the podcast, Peter Davison says, “Section 179 is really an accelerated depreciation benefit for the acquisition of personal property that can include technology such as the RxSafe … and it can be used as a means of reducing income by accelerating the depreciation benefits. In essence, you’ll get the benefit of tax savings on what’s due Uncle Sam at the end of the year, and then subsequently it should have a positive impact on your future quarterly estimates for the next fiscal year.”
Simply put, because the IRS allows businesses to deduct the full cost of qualified equipment (and RxSafe’s pharmacy automation equipment qualifies), pharmacies can substantially lower the amount paid for equipment from the start. Of course, lower costs equal higher profits.
Is No Out-of-Pocket Cost a Possibility?
Is it possible to have limited or even no out-of-pocket expense for a given time period? Listen to what Peter Davison has to say in the podcast . . .
In addition to listening to “Taking Full Advantage of Section 179 Tax Deduction – Pharmacy Podcast Episode 476” to learn more about the immediate financial benefits realized by adding an RxSafe 1800 to any size independent pharmacy, you can also take a moment to fill out a brief request for information form or call 877-797-2332. We would love to know more about your business. At RxSafe, we are happy to provide you with information about our powerful and profit-producing pharmacy automation technology.