Implementing the right automation equipment behind the pharmacy counter helps pharmacy staff work quickly, efficiently, and accurately. Automating time-consuming tasks in the daily pharmacy workflow like counting and reconstitution ensures pharmacists and techs have more time to dedicate to the most important aspect of the business - taking care of patients. While automation equipment can make a big impact for pharmacies, it often does not come cheap.
Section 179 of the IRS Tax Code can help pharmacies save on their taxes when they invest in equipment like Fillmaster that helps improve their business. Section 179 gives independent pharmacy owners the ability to reinvest in their business, stay competitive, and save significantly at tax time. If you’ve been considering upgrading your equipment, doing so before year-end could pay off — literally.
What Is Section 179?
Section 179 is a part of the U.S. tax code that allows small and mid-sized businesses — including independent pharmacies — to deduct the full purchase price of qualifying equipment or software purchased or financed during the tax year. Instead of depreciating the asset over several years, you can write off the entire cost in the year you place it in service.
How It Applies to Pharmacies
Pharmacies often invest in equipment that’s both essential and expensive — automation systems, counting technology, refrigeration units, compounding equipment, or even upgraded POS and software systems. Section 179 allows you to recover some of that investment quickly by lowering your taxable income. As long as the equipment is purchased, financed, and placed in service before December 31, it typically qualifies for the deduction.
Fillmaster Dispensers Eligible for Section 179
Fillmaster purified water dispensers are a great example of equipment eligible for the Section 179 deduction for independent pharmacy owners. Fillmaster dispensers automate reconstitution to make filling liquid prescriptions easy for pharmacy staff. This helps pharmacies reduce wait times, improve dispensing accuracy, and ensure prescriptions are filled with safe, clean water.
For pharmacies looking to provide the ultimate patient care experience for families, the Auto is an essential tool. Customizing the taste of liquid medication is an easy, effective way to improve adherence, and the Auto integrates flavoring seamlessly into the reconstitution process. The pharmacist simply needs to scan the medication's barcode and select the patient's desired flavor, and the Auto adds the water and flavor needed in seconds. When prescriptions for medications like Amoxicillin and Tamiflu are on the rise, the Auto is a great machine to have behind the pharmacy counter.
Brand new from Fillmaster, the Fillmaster 4000 is a cost-effective option for pharmacies looking to speed up reconstitution. No more measuring, guesswork, or costly bottled water. Pharmacy owners can customize the 4000 with optional barcode scanning and UV filtration to make the dispenser a perfect fit for their pharmacy.
The Cash Flow Advantage
Section 179 is a tax perk that can also serve as a strategic financial tool for pharmacies. By deducting the full cost upfront, you can improve cash flow for reinvestment, offset the cost of modernization or expansion, and stay competitive with chain pharmacies through upgraded technology.
Consult Your Tax Professional
While Section 179 can provide major tax savings, every pharmacy’s situation is unique. Always work with a CPA or tax advisor familiar with pharmacy operations to ensure your purchases qualify and your deductions are properly claimed.
Disclaimer: This information is for educational purposes only and should not be considered tax advice. Consult your tax professional for guidance specific to your business.
