Dentists who own their practice and have bought or financed equipment this year are eligible for big savings through the IRS Section 179 tax deduction.
“Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year,” according to section179.org. “That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.”
Certified public accountants like Allen M. Schiff see big advantages for dentists electing to take the Section 179 deduction.
Schiff, who is also president of the Academy of Dental CPAs, told dentists, “I highly encourage you to use this deduction if you paid for the equipment with cash and without incurring any long-term debt (financing). Certain types of equipment may also be eligible. You can use Section 179 with a dental chair and unit, digital X-ray, computer software, computers, etc.”
Section 179 boils down to 3 golden rules according to Trent Watrous, a dental-specific CPA in Nashville, TN.
- The deduction is reserved for the year that the equipment is placed into service.
- Section 179 applies to personal property, such as equipment and technology.
- The deduction is limited to $1,000,000 of purchases in a single year.
These golden rules along with a helpful Section 179 calculator can be found on the Patterson Dental site.
At SOTA Imaging, we want to provide the best way for you to optimize your tax write-offs. Until the end of 2019, we’ll be extending our two Clio digital X-Ray Sensors and Claris intraoral camera bundle. We include our imaging software as well, all for over 50% off their retail price. You can learn more here.