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Looking Ahead: Tax Planning for Aesthetic Practices


Astanza: Looking Ahead Tax Planning for Aesthetic Practices

Are you interested in starting your own laser aesthetic business? Maybe you’ve been thinking about expanding your existing medspa or tattoo shop with laser tattoo removal. Well, now is the perfect time to start thinking about investing in a new laser. As one year closes, another one begins, opening up many new possibilities for your aesthetic practice.

Whether your business has yet to exist or is in the process of growing, one thing is sure: now is the time to take advantage of end-of-year capital tax write-offs. A tax write-off is another way of referring to certain expenses that business owners can deduct from the amount of income they have to pay taxes on. Section 179 is one of the most helpful tools available to business owners, namely aesthetic businesses in the market for additional laser equipment.

As you begin to plan for 2022, it’s essential not to forget about the Section 179 tax deduction and how it can save you and your business money.

What is Section 179, and why does it matter for my aesthetic practice?

Most people get overwhelmed with the word tax alone, making Section 179 seem like a daunting tax term. However, it’s pretty simple to understand. Section 179 allows you to purchase, finance, or lease qualifying equipment, such as a laser, and then take a full tax deduction for the current year. The Section 179 deduction limit for 2021 is higher than ever at $1,050,000. This means your aesthetic business can deduct the total cost of a new (or used) laser, up to $1,050,000, from your 2021 taxable income. This deduction is good until you reach $2,620,000 million in purchases for the year.

Many small and mid-sized businesses use Section 179 to invest in the necessary equipment to grow their business without reaching the $2.62 million spending limit. For example, most capital purchases such as hair removal, tattoo removal, and even skin resurfacing lasers are significantly under the $1.05 million limit. Meaning, you could purchase, lease, or finance several devices this year, and you probably still wouldn’t reach the $1.05 million limit. There’s just one minor stipulation. For the deduction to qualify for 2021, the equipment must be purchased or financed and put into service by 11:59 pm on December 31, 2021.

How does the laser purchasing process work?

Last year we held a webinar on How to Buy an Aesthetic Laser hosted by David Murrell, President of Astanza, Opal Taskila, Astanza Director of Inside Sales, and Chris Kleine, Regional Sales Manager at Geneva Capital. Together, they discussed a handful of topics that all new and existing aesthetic business owners ask themselves. Questions like, “how much does a laser cost? Where do I buy a laser? Can I finance an aesthetic laser?” and more.

If you’re reading this blog right now, we highly recommend you take the time to watch that webinar. Our expert hosts provide helpful answers about the laser purchasing process, financing a laser, and Section 179. Please note that the live webinar was recorded in 2020. Some information has changed since then, like the Section 179 deduction limit we mentioned earlier.

Tax planning doesn’t have to be difficult, but it does require some research and careful application. Need more assistance and information on how to take advantage of Section 179 or how to buy, lease, or finance a laser? Our financial team of experts is here to help guide you. To see if you qualify for a capital equipment lease or investment, call (800) 364-9010, and an Astanza representative will be happy to assist you.

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