The Aptus Flex advantage goes beyond flexibility and durability.

This attractive, durable breakroom enhances your revenue. Made from superior material, it resists bacteria and harsh cleansing agents. They reduce workplace sickness and are easier to maintain.

Because of its modular design, the IRS categorizes Aptus Flex components as office furniture. You’ll begin recapturing your investment dollars within the same year you’ve put your investment to income-generating use.

Better still, Aptus Flex depreciates according to a seven-year depreciation schedule, so you’ll have greater deductions early on. For example, say you invest $20,000 in stations your business needs to grow.

By year four, you would have claimed $13,752 in deductions. By year seven, you’ve recaptured most of your investment as depreciation.

Plus, you have the advantage of owning this income-generating equipment. When you grow, your professional furnishings are designed to “grow” with you in your current location or move to a new location. You save thousands of dollars in new capital costs in addition to the thousands you’ll be able to depreciate. This article
will explain in general terms how Aptus Flex offers significant tax advantages. Naturally, actual deductions vary on individual
tax situations.

Hidden Savings – A Simple Case Study

We’ll take a closer look on how Aptus Flex saves you money. Let’s take the original $20,000 from the example above. You’ve invested in a nurse’s station and several exam room tables, enabling your staff to double the number of patients who visit your office.

A business generally cannot deduct, in one year, the entire cost of equipment purchased if the property has a useful life substantially beyond the tax year. Instead, you can depreciate it. That is, you can spread the cost over a number of years, and deduct a part of the cost each year. So what are the tax advantages? Let’s start with some assumptions:

  • Your business uses the General Depreciating System (the most common system used to calculate depreciation);
  • Property is depreciated using the declining-balance method at 200%
  • Property is put into service in 2009
  • Property cost basis is unadjusted

The table below assumes $20,000 in unadjusted cost (including sales tax). The furniture is used only for business and you have not chosen a section 179 deduction. Deductions are figured using the Modified Accelerated Cost Recovery System.

7-Year Cost Recovery using MACRS (Half Year Convention)
Year
Basis
Percentage (from table 4562)
Deduction
2009
$20,000
14.29%
$2,858
2010
$20,000
24.49%
$4,898
2011
$20,000
17.49%
$3,498
2012
$20,000
12.49%
$2,498
2013
$20,000
8.93%
$1,786
2014
$20,000
8.92%
$1,784
2015
$20,000
8.93%
$1,786
2016
$20,000
4.46%
$892
Source: Internal Revenue Service

To be allowed a depreciation deduction for a property, the property must meet all the following requirements:

  • The taxpayer must own the property.
  • A taxpayer must use the property in business or in an income-producing activity.
  • The property must have a determinable useful life of more than one year

Property stops ceases to be depreciable when you’ve fully recovered the property’s cost or when you retire it from service (whichever happens first). In the case of Aptus Flex, our superior design and construction is guaranteed for 10 years, three more years past your depreciation schedule. Your furniture will be helping you to earn revenue long after you’ve recouped your investment.

In some cases, customers decide to take a section 179 deduction. If you fall into this category, you can possibly deduct the full cost of the furniture (up to $250,000) in the first year the furniture is purchased and placed into service. The actual amount you can deduct depends on many factors, such as your total property deductions (over a certain amount) and your taxable income. Furthermore, recent legislation provides for an additional first-year bonus depreciation of 50% of the adjusted basis of qualified property placed in service in 2009. Consult your tax advisor to understand the potential benefits of each option.

Learn more about how Aptus Flex is the right fit for your office or practice. Contact one of our representatives today by emailing sales@aptusflex.com or calling 1-800-831-9360.

Home | Medical Cabinetry | Nurses' Stations | Break Rooms | Receptionist Stations | Custom Cabinets
Accessories | Complementary Desks | Contact Us

Contemporary Interiors Inc.
2626 N.W. 35th Street
Ocala, FL 34475
Toll Free: 1-800-831-9360
Ph: 352-620-8686
sales@aptusflex.com