Tax Advantages of Upgrading Your Dental Equipment
Wednesday, July 05, 2017
Investing in new equipment for your practice can not only help grow your business and improve your patient’s dental experience, but it can also provide added tax advantages when it comes time to file your annual tax return. Making the decision to purchase new technology and equipment for your practice may not come easy, but under the Section 179 Tax Deduction, it may be more lucrative. The Section 179 Tax Deduction allows a business to deduct the full purchase price of financed or leased equipment and off-the-shelf software. The equipment or software must be within the specified dollar limits, which has a maximum spend of $2,000,000, to qualify. Additionally, the new goods must be placed into service in the same tax year that the deduction is being taken. Stipulations under the Section 179 Tax Deduction include a maximum deduction of $500,000 with a maximum spend on eligible equipment and software limited to $2,000,000 to qualify for the full deduction. The new equipment must be purchased for at least 50 percent business use. Finally, you must elect to take the deduction when filing your taxes. Before taking advantage of the Section 179 Tax Deduction, it’s vital to take a look at your dental practice’s economic position prior to the purchase of new equipment and technology. If you’re ready to upgrade your practice, the tax benefits under this deduction can make the additional savings beneficial to your bottom line come tax season.