“It’s a slam dunk.” That’s how Keith Drayer, vice president and general manager of Henry Schein Financial Services, describes purchasing equipment during the 2015 tax year and taking advantage of the benefits of Section 179 of the tax code. According to the Section 179 website, “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. 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.”
Under the Section 179 Equipment and Technology Credit, taxpayers who acquire new equipment — including machinery, furniture, fixtures and off-the-shelf software — may be able to deduct up to $25,000 of qualifying expenses during the first year of ownership. Equipment must be in service by December 31, 2015. This deduction is advantageous to the purchase of equipment such as a DEXIS™ digital radiology system, DENTRIX® practice management software, or a CariVu™ caries detection device, which are all in price ranges under the limit.
“Henry Schein Dental always offers creative, innovative, and flexible deals for customers,” says Drayer. “Depending upon the purchase, practitioners also can obtain a nice deferral on financing when acquiring equipment and have the government make your payments before you do.”
In conjunction with HSD pricing and financing, Section 179 can help dentists fit technology purchases in the budget. Drayer explains, “When you buy at the the end of the year, you may not be making any large payments for a full year, and dentists may be getting a tax refund from the government. By using Section 179, some may even lower their taxable income. All of this savings can be used to offset the finance payments which are not going to kick in for the year. Drayer adds, “This puts the clinician/business person in a great position to create a more efficient, productive, profitable, patient- attractive, state-of-the-art practice before any payments are due. Henry Schein Financial Services offers qualified customers very aggressive financing to match their needs.” Of course, dentists should check with their tax advisors about their particular circumstances.
Taking the Section 179 deduction and adding technology to the practice offers practitioners a choice, according to Drayer — either pay a certain amount to the IRS or take advantage of a benefit that can lead to improving your practice, access to care, quality of care, staff experience, and patient experience. Adding technology and deducting it with the help of Section 179 creates a win-win scenario for everyone.
Article first appeared in the Henry Schein Privileges eNewsletter.
Please consult your accountant before making purchases and filing your section 179 deduction.