New or Used Dental Equipment Still Eligible for Section 179
As we approach the end of the year, it’s time to start thinking about how to take advantage of certain tax deductions before it’s too late. For new or used dental equipment and/or software, one deduction for dental professionals to consider is Section 179. This allows you to write off the entire cost of your equipment purchase for this year’s tax filings. In 2020, there are some new rules to follow to ensure you get the maximum benefit. Take a look at just some of the highlights below.
What Is Section 179?
Section 179 is an IRS tax code that allows businesses to deduct the entire purchase price of their new or used equipment or software within the tax year it was purchased and put to use. In previous years, you could only deduct a portion of the price each year as the equipment depreciates. But, with this revised Section 179, you can deduct the entire amount in the purchase year.
This tax deduction is meant to encourage small business owners, such as dentists and dental specialists, to stay up to date with their dental equipment and software so they can provide the best care for their patients. It also allows them to invest in themselves and see their practices grow.
What’s New in 2020?
Even if you’ve claimed this deduction before, it’s important to know what the rules are for tax year 2020 to ensure you get the maximum benefits from this deduction.
Deduction Limit
This year the maximum amount you can write off has increased to $1,040,000. In 2019, the limit was capped at just $1 million. This price can include new or used dental equipment and off-the-shelf software. The equipment must be purchased and put to use between January 1, 2020 and December 31, 2020 to be eligible for the Section 179 deduction in 2020.
Spending Cap
The Section 179 deduction is available for up to $2,590,000 of equipment purchases. After this amount, the deduction will be reduced on a dollar-for-dollar basis. That’s what makes it a great benefit to small businesses, because larger businesses who spend more on equipment won’t receive the deduction.
Bonus Depreciation
In addition to the capital equipment deduction benefits, Section 179 has been expanded to increase bonus depreciation from 50 percent to 100 percent for other qualifying purchases.
How to Take Advantage of This Deduction
The best time to purchase used dental equipment is right now. As long as you put the equipment into service by the end of the day on December 31, 2020, you are eligible to receive the Section 179 tax deduction. What’s even better is that when you buy certified pre-owned dental equipment from Renew Digital, you’re already going to save 30-50% off the price of buying new a dental X-ray machine or dental cone beam system. This allows you to upgrade your practice at a fraction of the cost, plus receive a tremendous tax deduction in the process!
To get started, contact us at Renew Digital today. You can call us at 888-246-5611 or send a message online. Our Sales Representatives will be happy to help you select the ideal dental X-ray machine or dental cone beam for your practice. To learn more about Section 179, be sure to consult with your tax advisor or visit Section179.org. Try out the 2020 Section 179 Calculator to determine your full range of benefits.
Take this chance to invest in your practice before time is up!
