The IRS Tax Code Section 179

Equipment & Technology Credit

Upgrade Your Office Without Breaking the Bank!

Section 179 of the IRS tax code allows dental offices to deduct up to $1,080,000 worth of equipment upgrades. As dental practices have to update to keep up with the latest technology regularly, this is a win-win!

What is Section 179?

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

What Purchases Qualify For Deduction?

Any new equipment and technology are great examples of tax-deductible expenses for dentists with Section 179. Here are some more examples of deductible expenses:

  • Office Equipment

  • Office Furniture

  • X-Ray Machines

  • Hardware

  • Software

  • Computers

  • and more!

Want to know how to claim a Section 179 Tax Deduction for your Dental Practice?

To find out if this deduction is right for you, speak with an accountant, as they can help provide you with the correct materials and requirements you’ll need to apply for the deduction.

If you need any help figuring out which equipment would be best for your business to invest in, contact us today!

  • Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

  • Qualifying purchases include equipment, technology, software, computers, office furniture, and more. In order for the purchase to qualify as a deduction, it must be used 100% of the time for business purposes.

  • In 2022, the maximum tax deduction for Section 179 is $1,080,000!

  • You can deduct either brand new, or pre-owned equipment under Section 179, as long as it qualifies for the deduction in general.

  • This year’s deductions must be purchased before Jan 1st, 2023. Meaning anything that you purchase between now and then can be used as a Section 179 deduction.

  • After determining if the deduction is right for you, you should speak with your tax advisor to get the full deduction amount. Once you have your amount it’s fairly straightforward when you claim it on your taxes, as you will be submitting the extra Section 179 form with your regular taxes.

Section 179 FAQs