Take Advantage of the Section 179 Tax Deduction in 2025
As a dental practice owner, your investment in equipment—from new imaging systems to essential patient chairs—is vital for future growth. Fortunately, the Section 179 tax deduction may help you lower your taxable income and help you save on your business taxes for 2025. Learning more about this valuable tax incentive is key to significantly lowering your taxable income, reducing the amount of business equipment taxes you owe, and helping you plan for your practice's future.
What is the Section 179 tax deduction?
The IRS Section 179 deduction is a federal tax incentive designed to help small and medium-sized businesses. This deduction allows businesses to expense the cost of qualifying tangible property, like equipment or machinery, purchased or leased for use in a business or trade. This can lead to significant tax savings and help increase cash flow.
How does the Section 179 tax deduction work?
Simply put, any dental practice filing a U.S. Business Income Tax Return for 2025 is eligible to take the Section 179 deduction. The qualifying equipment must be acquired in 2025 and installed or placed in service by Dec. 31, 2025.
I recently bought new equipment. What more do I need to know about qualifying for Section 179?
Partner with your equipment provider to ensure adequate lead time for installation prior to the end-of-year deadline.
If the new equipment requires employee training, arrange those sessions as soon as possible to meet the deadline. Complete training is often a component of successful implementation.
Keep in mind that to claim the Section 179 deduction for 2025, the equipment must be placed in service by December 31, 2025. Paying for the equipment in advance without completing installation by this date will disqualify it for the 2025 deduction. Ensure you also meet all other Section 179 eligibility rules.
What kinds of equipment purchases qualify for the deduction?
Most of the equipment you'll purchase, finance, or lease for your practice is eligible for the deduction, provided that it is used more than 50% of the time for business purposes. A few examples of qualifying purchases include:
- Business vehicles
- Certain improvements to existing facilities of the office, such as HVAC, security, fire alarms, and roofing
- Computers
- "Off-the-shelf" software for your dental practice
- Equipment or machines such as Digital X-Ray, CBCT, Intraoral Scanners, 3D Printers, Curing Lights, Ultrasonic Scalers & Air Polishers, Sterilizer Units, Handpieces, Lasers, and accessories
- Office and operatory furniture, including patient chairs, cabinets, and tables
The IRS often reviews freight bills and bills of lading during audits to confirm equipment delivery and installation dates. Retain these documents for potential audits.
Is there a limit on how much money I can deduct in 2025?
The Section 179 deduction limit for 2025 is $2.5M. Therefore, your dental practice can deduct the total cost of qualifying equipment (new or used, leased or owned), up to $2.5M, from your taxable income in 2025.
The tax deduction applies until you reach a yearly spending cap of $6.5M. The spending cap was implemented to ensure the deduction remains an incentive for small businesses.
Who should I contact to claim the tax deduction for dental practices?
TDSC.com does not provide tax advice. If you have questions about Section 179, contact your CPA or tax professional to determine your eligibility for a Section 179 tax deduction. They can help you determine if taking the Section 179 deduction is the right choice for you and your practice and to ensure you also meet all other Section 179 eligibility rules. In addition, your tax professional may be familiar with other tax provisions that may provide additional tax savings.
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