Maximize Your Dental Deductions: Utilizing Section 179

By Stephen Skok, CPA, MST – Senior Manager, Doeren Mayhew

As we approach year end many dental practices are looking for ways to maximize deductions in order to minimize their tax liability.  One way this can be acheived is by taking advantage of the Section 179 expense election.

Section 179 Expensing Election

The election allows practice owners to deduct (rather than depreciate over a number of years) the cost of purchasing eligible new or used assets, such as dental equipment, furniture, off-the-shelf computer software and qualified leasehold improvements. The expensing limit for 2017 is $510,000 – and begins to phase out dollar-for-dollar when total asset acquisitions for the tax year exceed $2.03 million (these amounts are annually adjusted for inflation.)  You can claim the election only to offset net income from a “trade or business,” not to reduce it below zero to create a loss.

Taking Advantage of Section 179 as a Dental Practice

With Congress discussing tax law changes that might impact 2018 and beyond, it is even more important than ever to take time to plan your deduction strategy with a dental CPA, like those at Doeren Mayhew.

There is still time to take advantage of this great tax break this year. If you plan on buying new equipment for your practice be sure you are considering the Section 179 expensing election. Contact our dental CPAs to verify your dental practice is maximizing its Section 179 expensing election.