Tax Deduction for Dental Practices

You may have heard about Section 179 tax deductions from tax professionals or bookkeeping services online.

If not, you are in the right place to learn.

Let’s dive into some details as we discuss tax deductions for dental practices.

What Is Section 179?

Section 179 is a tax deduction of up to $1,080,000 on qualified equipment and technology purchases, with a $2.6 million purchase limit. Dental practices may be eligible for Section 179 tax deductions on their 2023 taxes.

To qualify, you must purchase and place the qualifying technology and equipment in service at your practice before December 31st and meet other eligibility criteria.

The dental tax deduction applies to things like equipment, technology, roofs, air conditioning, off-the-shelf software, heating, fire alarms, ventilation systems, security systems, and even office furniture.

Benefits for Dental Practices

There are a number of benefits for dental practices. Firstly, Section 179 allows you to take an instant deduction for business expenses that concern your practice’s depreciable assets. This includes equipment, technology, software, vehicles, and more.

Secondly, since the maximum tax deduction is a little over $1 million for a purchase limit of $2.7 million, you can make some serious updates to your practice to increase its value: a new look, better equipment, and new tech. A lot can be improved or upgraded with this maximum budget.

The best part is that you have until the end of the year to decide on the changes/ upgrades, arrange funds, and put them to use. That is more than enough time to come up with an ideal plan, create a budget, and implement it before the deadline.

Lastly, the Section 179 tax deduction allows you to lower your tax liability for this year instead of categorizing it as an asset and depreciating it over multiple years as smaller tax deductions.

Final Thoughts

Of course, you should always consult your tax attorney about eligibility for Section 179 before you start spending on qualifying technology and equipment for your dental practice.

That being said, we highly recommend consulting top bookkeeping services online, like Dental Bookkeeping, for dental support.

If you want to learn more about tax deductions for dental practices or about the best bookkeeping small business in the US, please visit our website today.

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