In the financial storm of the past few months, veterinarians can still find a silver lining. You can take a big deduction on equipment all at once with an expensing election instead of slowly waiting for depreciation over the years. The IRS's section 179 lets you expense up to $250,000 of qualifying equipment purchases for 2008. This incentive provides all of the tax benefit in the year of purchase even when the purchase is financed or leased under a $1 buyout lease.

Depending on your tax bracket, the federal tax benefit can be up to 35 percent of the cost of the equipment expensed. You're limited by your practice's taxable income before the election, but any unused amount is carried over to the following year. For 2008, when your qualifying expenses exceed $80,000 during the year, the maximum deduction is also phased out.

Purchases that don't qualify for the Section 179 election are still eligible for the normal depreciation deduction. And for 2008 even this option is more attractive. The Economic Stimulus Act of 2008 created a temporary bonus depreciation deduction that allows 50 percent first-year depreciation. So if you can't or don't use the 179 deduction, there's still an incentive to shrink your 2008 tax bill.

Gary Glassman, CPA, is a partner with Burzenski and Co. in East Haven, Conn., and a Veterinary Economics Editorial Advisory Board member.