Many dental practitioners are surprised to learn that the Section 179 tax deduction can be applied to both new and used dental equipment.
As we are coming into the final months of the year, you may be wondering “What deductions can my practice take to significantly impact the bottom line?”. IRS Section 179 allows you to deduct the complete cost of the purchased equipment purchased in 2021.
By purchasing equipment for your practice, you can deduct the full purchase price of qualified used equipment in the first year of purchase. Taking the deduction from gross income in 2021 can have a significant impact on your bottom line. We have helped hundreds of dentists over the past 5 years increase their practice income with updated digital x-ray equipment.
Section 179 Tax Deductions for Dentists and Dental Practices
To qualify for the deduction, all you need to do is purchase or finance the equipment and/or software and put it to use (i.e. have it installed) in this tax year.
In 2021, the cap limit for write-offs is $1,050,000, so you can easily deduct the full amount of any dental imaging equipment or software your practice may need. In addition, not only can you apply for the Section 179 tax credit, but you can also begin adding additional procedures and production to your schedule for even more savings and an accelerated return on investment.
If you have questions regarding the Section 179 tax law, please refer to: