Section 179 is the United States Internal Revenue Code (IRC) that allows for an immediate deduction in spending on Business Equipment and Assets. If you purchase qualifying equipment (or lease), you can deduct the full purchase price from your total income under Section 179.
If you are planning to Buy Dental Equipment, then Section 179 helps you to reduce your tax liability and helps you to grab the full benefits of investing in your dental specialty practice
The IRS wants YOU to SAVE on Dental Equipment this Year!
Essentially, 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. This deduction is good on new and used equipment, as well as off-the-shelf software. 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.
For 2022, the maximum amount you may elect to deduct is $1,080,000 on qualifying property purchased and placed into service during the 2022 tax year. If your purchases exceed $2.7 million, the deduction amount will be reduced dollar for dollar equal to the amount over $2.7 million.
| Equipment Purchases: (Assuming a tax bracket of (35%) | $ | 1,150,000 |
| Section 179 Deduction: | $ | 1,080,000.00 |
| Bonus Depreciation Deduction (100% in 2022): | $ | $70,000.00 |
| Normal 1st Year Depreciation: | $ | 0 |
| Total First Year Deduction: | $ | 1,150,000.00 |
| Cash Savings on your Purchase: | $ | 402,500.00 |
| | ||
| Lowered Cost of Equipment (after Tax Savings): | $ | $747,500.00 |
Using a $1,150,000 equipment cost for an example calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased. In above example, $1,150,000 in equipment purchased has a true cost of $747,500.00. That’s $402,500.00 saved.
The Section 179 Deduction has a real impact on your equipment costs. Here’s easy to use a calculator that will help you estimate your tax savings. Simply enter in the purchase price of your equipment and/or software, and let the calculator take care of the rest.
In order to qualify for the Section 179 Deduction, the equipment must be purchased, financed or leased equipment and put into service by December 31, 2022!
Please note that this Section 179 Calculator fully reflects the current Section 179 limits and any and all amendments / bonus depreciation.
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