If you or your practice is considering investing in new 3D conebeam, CAD/CAM, 2D digital x-ray or practice management software, 2012 is your last year to benefit from the existing Section 179 dental tax deduction.

In 2013 Section 179 tax deduction will be capped at $25,000 and there will not be a bonus depreciation deduction.

Let’s take a look at how these changes will affect your dental practice by comparing the Section 179 dental tax deduction for 2012 vs. 2013, when buying the same dental technology/equipment.

Let’s Do the Math:

2012 Section 179 Deduction        $ 45,148

2013 Section 179 Deduction         $  8,750

                                                 $36,398 difference in Section 179 tax deduction in 2012 vs 2013

By waiting until 2013 to make the same dental equipment investment that you could have made in 2012, you and your dental practice will lose a tax deduction of over $36,398.

But wait, there’s more! The new healthcare bill is taxing all dental manufacturers an additional 2.3% starting in 2013, which will ultimately mean higher prices in the range of 3% - 7% on all dental equipment.

If you are considering investing in 3D conebeam, CAD/CAM, 2D Digital X-ray or practice management software, 2012 is your year. In the example above, you can see there is a $36,398 reason why to buy your dental equipment in 2012.

For more information on the changes in the Section 179 dental tax deduction or to receive a quote on 3D conebeam, 2D digital x-ray or Daisy practice management software, call Jim Day at (503) 765-3505 or by email.

The information cited above is for illustrative purposes.  You should consult your accountant for specific advice as to how these federal changes will affect your specific tax situation.

This post on the 179 tax deduction was written in 2012 and speaks to the changes that would be effective 1/1/2013.  There is a more recent post that is looking forward to the changes that will take place on 1/1/2014.  Here is a link to that more recent post.

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