The first year deduction limit for equipment purchases under IRS Code Section 179 is $25,000 for 2014.  This is a substantial reduction from the $500,000 limit imposed for the year 2013.  To make matters even worse for clients planning on starting new practices this year, bonus depreciation, which allowed the immediate deduction of 50% of the cost of new equipment purchases, is not available at all for 2014.  Furthermore, previously eligible leasehold improvements no longer qualify to be deducted under Code Section 179.  Unless or until our dysfunctional Congress gets its act together and decides to replace these incentives for start-up businesses, it will increase the after tax cost of entry into private practice.  For more information, call our office and we will be glad to discuss this and other issues that you should take into consideration when deciding whether or when to start a practice.