When you buy used dental equipment, you can use the Section 179 tax deduction to write off your expense in the year of purchase. Want to save up to 60% off the cost of dental equipment? Want to take advantage of the Section 179 deduction at the same time? Here's what you need to know about using this tax benefit.
What Is Section 179?
Section 179 is part of the IRS code. Normally, when you make a large capital purchase such as used dental equipment, you have to write off the expense bit by bit over the years. However, this deduction lets you write off the full amount in the year of the purchase. That reduces your tax liability and helps you reap the full benefits of investing into your dental or dental specialty practice.
How Does Section 179 Work?
As indicated above, you can write off the entire cost of qualified equipment in the year of purchase. As of 2018, you can claim up to $1 million in equipment costs on your business tax return.
What Is Bonus Depreciation?
The bonus depreciation also allows you to write off a large portion of equipment when it's put into service. In past years, you usually could only claim 50%, but as of 2018, you can claim 100% of your equipment costs in bonus depreciation. Additionally, you can apply this deduction to used equipment. In the past, you could only use bonus depreciation on new equipment.
To claim the deduction, you must put the equipment into service between January 1, 2018, and December 31, 2018. The maximum claim is for $2.5 million for all equipment combined. Over that threshold, your deduction starts to phase out, and you can't claim the deduction if you spend over $3.5 million in expenses.
How Much You May Save
The exact amount Section 179 can save you on your used dental equipment varies based on the cost of equipment you buy and on your tax bracket. To give you an idea of the potential, here's a breakdown of potential savings.
- Cost of New X-Ray Equipment: $100,000
- Cost of Used X-Ray Equipment: $50,000
- Section 179 Deduction: $50,000
- Total First Year Deduction: $50,000
- Cash Savings on your Purchase: $17,500
- Total Savings (Tax + Pre-Owned Price): $67,500
How Can Renew Digital Help?
Renew Digital is familiar with the Section 179 Deduction and understands how it applies to used dental imaging equipment and related software. We can help you find the best dental X-ray machine, cone beam system, or other used dental equipment to meet the exact needs of your practice, and all at the best price to deliver more value to your practice and your patients than ever before.
To learn how you can maximize your savings by combining pre-owned equipment value with Section 179 tax incentives, contact Renew Digital by calling us at 888-246-5611 or simply fill out our easy online contact form and we’ll be in touch!
