Updated May 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

Section 179 Deductions for Physical Therapy Clinics in Jacksonville, FL

Section 179 of the Internal Revenue Code lets a Jacksonville physical therapy clinic immediately expense the cost of qualifying equipment in the year of purchase, instead of depreciating it over 5–7 years. For a PT clinic adding $40,000 of new therapy equipment in 2026, that's the difference between deducting $40,000 in year 1 versus $5,700 in year 1 (with the rest spread over the next several years). The cash-flow impact is significant. This page covers what qualifies, what the limits are, and how Section 179 interacts with bonus depreciation.

Section 179 Limits for 2026

• Maximum annual deduction: ~$1,250,000 (inflation-indexed; verify with current IRS publication)
• Phase-out threshold: Total Section 179 property placed in service of $3.13M+ phases out the deduction
• Taxable income limit: Deduction cannot exceed total taxable income from active trade or business

For a typical Jacksonville PT clinic, the practical issue is the taxable income limit, not the dollar cap. A clinic with $180K in net income and $100K in equipment purchases can take up to $180K in Section 179 expensing — meaning the full $100K is immediately deductible.

What Qualifies — PT Clinic Specifically

Tangible personal property used in the active trade or business. For a PT clinic in Jacksonville:

• Treatment tables (Hi-Lo electric tables, traction tables, mat tables)
• Therapy equipment (TheraBands and accessories, exercise balls, BOSU, TRX systems)
• Modality equipment (ultrasound, electrical stim, hot/cold therapy, ESTIM)
• Diagnostic equipment (goniometers, dynamometers, force plates)
• Strength/conditioning equipment (treadmills, stationary bikes, weight stacks, free weights)
• Computers, EMR tablets, printers, networking equipment
• Office furniture (desks, chairs, reception furniture)
• Vehicles used 100% for business — qualifying SUVs and trucks (with limits)
• HVAC, security systems, fire suppression in qualifying improvement property

What Doesn't Qualify

• Real property (the building itself, land, structural components)
• Property used 50% or less for business
• Property purchased from a related party
• Property used for lodging (rare for PT clinics)
• Inventory held for sale

Note: leasehold improvements to the clinic interior generally don't qualify under § 179 directly, but qualified improvement property (QIP) under separate rules can be expensed via 100% bonus depreciation through 2022 (now phasing down — 40% in 2026).

Section 179 vs. Bonus Depreciation

Both let you accelerate equipment depreciation, but with different rules:

Best practice for a PT clinic with a profitable year: take Section 179 first up to the taxable income limit, then bonus depreciation on the remainder. Florida conforms to federal Section 179 (no state-level addback), so the federal deduction stands clean.

Worked Example — Jacksonville PT Clinic 2026

A 4-PT clinic on the Southside expands and purchases:

• 4 new Hi-Lo treatment tables: $14,000
• 2 ultrasound units: $7,000
• 2 electrical stim units: $4,500
• Treadmill and stationary bike: $5,800
• 3 EMR tablets: $2,700
• Office furniture and reception desk: $4,500
• HVAC upgrade for added treatment room: $9,000
• Total qualifying purchases: $47,500

Clinic 2026 taxable income (before deductions): $165,000. Full $47,500 qualifies for Section 179 expensing. Tax savings (assuming 32% combined federal effective rate at the owner's bracket): $15,200 in year 1. Without Section 179, the same equipment would deduct ~$6,800 in year 1 under straight-line depreciation, saving only $2,176. Net Section 179 advantage: $13,000+ in year-1 tax savings.

The "Placed in Service" Rule

To claim Section 179 in 2026, the equipment must be placed in service in 2026 — not just ordered or paid for. "Placed in service" means ready and available for its intended use. Buying and paying for an ultrasound unit on December 28 that doesn't arrive and get set up until January 5 of the next year means the deduction belongs in the next year, not 2026.

For year-end purchases, document delivery and installation dates carefully. Save the packing slip, installation invoice, and any setup confirmation.

Common Section 179 Mistakes

• Placing equipment in service after year-end: Deduction shifts forward a year. Plan year-end purchases for delivery before December 31.
• Exceeding taxable income: Section 179 cannot create a loss. Excess carries forward but is delayed.
• Forgetting to elect: Section 179 is elected on Form 4562. Equipment purchased without the election is depreciated normally.
• Confusing bonus depreciation with Section 179: Both accelerate, but they're separate elections with different rules. Coordinate them.
• Ignoring the recapture risk: If business use of an asset drops below 50% (selling the practice and keeping equipment for personal use, e.g.), Section 179 deductions can be partially recaptured as ordinary income.