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What’s the big deal about Section 179 for dentists?

By Rachel Moody, MBA on October 14, 2016 in Dental Business

Section 179 was designed to give small business owners –including dentists! – a tax break when they reinvest in their business.  The intent is to spur smart spending by making the entire purchase price tax deductible.

According to the official site Section179.org,  Section 179 can provide you with significant tax relief for the 2016 tax year. Equipment can be purchase, financed, or even leased in some cases. Of course, you should consult with your tax adviser to make sure your capital equipment purchase does qualify.

How much will Section 179 really save me?

Now really is a great time to add the LANAP and LAPIP treatments to your office. With section 179, you save over $43,000 on the PerioLase Periodontal Package! These calculations assume a 35% tax bracket and purchase price of $124,995.

Fast Fact: Use this 2016 Section 179 Calculator to see how much the Section 179 tax deduction can save your dental office!

 Does the PerioLase Periodontal Package qualify for Section 179 for dentists?

Yes!  The PerioLase MVP-7 is considered a capital equipment purchase and qualifies.

Is there a deadline for using the 2016 Section 179 for dentists?

Equipment must be purchased AND put into service before 12/31/16 to qualify. For the PerioLase Periodontal Package, this means you should schedule your training dates ASAP to save your seat.  Find your 2016 training dates here.

 Are there any special limits on Section 179 for dentists?

Section 179 doesn’t have any special limits on dental offices. The permanent cap is $500,000 – meaning your dental capital equipment purchases up to $500,000 are 100% tax deductible.

Fast Fact: Second PerioLase MVP-7 purchases also qualify for Section 179, helping you save real dollars while expanding.

Do Section 179 limits vary each year?

The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) was passed by both the House and Senate and signed into law on 12/18/2015. This bill expanded the Section 179 deduction limit to $500,000 until further notice. Prior to the PATH Act, the 2015 limit was $25,000.

Take advantage of the benefits Section 179 provides for your office and growth opportunities!

NOTE: This article is not intended as tax advice, please be sure to check with your tax professional.

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