Any time a business has tangible assets, depreciation can come into play. With time, the value of resources, like a chiropractic table, will fall due to natural wear and tear, no matter how much was spent on the initial purchase.
Whether your practice is home to a single chiropractic table or a collection of tables, it is a wise move to understand how the depreciation of these assets can affect your accounting and taxes.
According to the Internal Revenue Service, depreciation is “an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property.” In other words, the money you may be able to deduct can help make up for the inevitable deterioration of the table over time.
Fortunately, most of today’s tables are manufactured and assembled in ways that are designed to last and stand up to the wear and tear of a busy practice. However, like any other piece of equipment, they will begin to depreciate with time. The bright side here is that most of the products used in a professional practice will meet the IRS’ requirements for an income tax deduction.
For a chiropractor to be allowed a depreciation deduction for his or her chiropractic table, the person paying the taxes must be the owner of the table. The piece of equipment must also be used within the business as part of a service that produces income for the professional.
In essence, depreciation allows you to recover the cost of the chiropractic table, which is used to earn income in your business. Typically, it is not possible to deduct the entire cost of the table during the first year it is in use. Instead, depreciation allows you to deduct the fee you paid for the chiropractic table little by little, over each year that the table is in use.
For this reason, it can be important to have a general grasp on the “life” of your table, or about how long it is expected to be used within your chiropractic practice.
A tax professional or accountant should be able to help you get a more thorough understanding of what depreciation means when it comes to your chiropractic tables and your taxes.
