Skip to main content

IRS Form 8826 is now available from

A disabled access credit may be available to medical practices who have purchased power tables to enable such practices to facilitate the handicap.

The credit is discussed in Section 44 of the IRS code. To qualify, the practice must meet the following qualifications:

1) Annual gross receipts of the practice do not exceed $1,000,000.00 or
2) The practice employed no more than 30 full time employees during the taxable year before the taxable year in which the credit is selected.

An eligible practice may elect to apply a credit against income tax. The credit is equal to 50% of the power table purchase price that is over $250.00 and not more than $10,250.00.

For example:

A doctor purchases a Hy-Lo or Elevation table for $4,250.00 and your tax advisor agrees that the expenditure meets the requirements of the Section 44 credit. Assume the doctor has $100,000.00 in taxable income and is in the $31% tax bracket:

without credit with credit
Taxable Income
$100,00.00 $100,00.00
Tax at 31% 31,000.00 31,000.00
Section 44 Credit (50% x $4,250) 0 2,125.00
Net Tax Due 31,000.00 28,875.00

In addition, the practice can deduct $2,125.00 ($4,250.00 less the credit of $2,125.00) in depreciation over the table's tax code economic life of utilize the Section 179 deduction.

IRS Form 8826 is now available from

Utilizing the Section 179 deduction along with the Section 44 credit. The net out-of-pocket cost for the $4,250.00 table would be $1,466.25.00:

Cost of the table $4,250.00
Section 44 Credit 2,125.00
Section 179 Deduction ($2,125 x 31% tax savings) 658.75
Net taxable cost 1,466.25

A doctor can buy the table at a greatly reduced cost of $4,250.00 and will only pay cash out-of-pocket...$1,466.25.

Call for more information. Please remember that your tax advisor must agree.