The New Year is a wonderful time for new beginnings or to erase the past. This is the primary reason why health and wellness businesses such as health clubs, tanning salons, tattoo removal clinics and Med Spas see an increase in activity with customer appointments at the beginning of each year.
To be prepared for the increase in activity surrounding the New Year, there are many companies in the aesthetics industry that look to the end of the year to purchase new equipment or to upgrade existing equipment.
Year-end 2017 might be one of the best years ever to purchase a new laser tattoo removal device or upgrade the existing equipment at your practice.
There are three primary reasons why end of the year 2017 is an excellent time for purchasing a new tattoo removal or hair removal device:
1. End of Year Specials
2. Medical Device Tax Savings
3. Section 179 Deduction
End of Year Specials
It’s true that many companies offer “end of year specials” to encourage new purchases before year-end. While the promotions or publicity around these specials might not be what you find on Black Friday, you can sometimes find substantial price reductions on equipment towards the end of year.
To help our prospective clients save even more, Astanza has gathered our most popular laser and hair removal devices and created a package for less than $200k. This includes all of the following:
Trinity Tattoo Removal System - Combination of 1064/532nm Nd:YAG and 694nm Ruby Lasers
We've also included a 2 year warranty on each device, a Zimmer Cryo 6 Cold Air Device, expert training, and more.
If you are interested in learning more about this great offer or other specials, click here or call 800-364-9010 and ask to speak with an Astanza representative.
ACA Medical Device Tax
When the Affordable Care Act was signed into law, Section 4191 of the Internal Revenue Code imposed an excise tax of 2.3% on the sale of certain medical devices by the manufacturer or importer of the device.
While this was the law of the land for several years, the Consolidated Appropriations Act, 2016 (Pub. L. 114-113), signed into law on Dec. 18, 2015, included a two-year moratorium on the medical device excise tax imposed by Internal Revenue Code section 4191. Thus, the medical device excise tax does not apply to the sale of a taxable medical device by the manufacturer, producer, or importer of the device during the period beginning on Jan. 1, 2016, and ending on Dec. 31, 2017.
For companies looking to purchase medical equipment, the expiration of the medical device excise tax (which most manufacturers will pass on to consumers) will raise the cost of items such as laser tattoo removal and hair removal devices starting in January 2018 unless Congress or the I.R.S. does something to extend the moratorium on the tax. That means that the $150,000 medical device you were looking to purchase will increase overnight by $3,450. Make sure to complete your purchase before the end of the year to ensure a 2.3% savings.
Section 179 Deduction
Section 179 of the IRS tax code is designed to help small businesses grow by giving them a tax break for the types of investments that enable growth. The deduction can be applied to purchased, leased, or financed equipment. Instead of waiting years to write off the depreciated value of your equipment purchased, you can write it all off in the year it was purchased.
To take advantage of this deduction, you simply need to complete the transaction within the calendar year and fill out a simple IRS form with your annual business taxes.
Key requirements for a purchase to qualify for 2017:
- The purchase must be used more than 50% of the time for the business (not personal use)
- Applicable toward business equipment, computers, office furnishings, off-the-shelf software, and even business-use vehicles
- Applicable toward new or used equipment
Not applicable toward land, buildings, or building improvement
- Less than $2,000,000 of equipment purchases are made in that calendar year (the Section 179 deduction is for small to medium businesses only)
Based on these requirements, many existing business owners are likely to have made several business purchases that qualify for the deduction.
It’s a Great Time to Upgrade or Start Fresh
Similar to the person wanting to erase the name of an old flame (or an actual flame tattoo), it’s a great time of year for tattoo shops, Med Spas and other companies in the aesthetic industry to upgrade and enhance their service offerings. This could be as simple as adding laser tattoo removal services (and a tattoo removal laser) to your MedSpa or adding a new, upgraded hair removal laser.
We can work with you to find the right delivery, training, and installation time that works with your holiday schedule. Our team is flexible and can cater to your needs.
Lock in end-of-year tax savings and pricing with a deposit and a signed quote and take delivery in either 2017 or 2018 – it’s up to you. Our knowledgeable team can talk to you about your goals for getting started with Astanza tattoo removal and create a plan that works for your needs.