Save on Dental Taxes with Smart Equipment Purchases This Year
Strategic equipment purchases aren’t just about improving patient care — they can also be a powerful way to reduce your dental practice’s tax liability. Many dentists don’t realize how much they could be saving just by timing their investments correctly and using the right tax strategies.
According to Jay Malik, one of the most effective ways to maximize savings is through smart year-end equipment investments. Here’s how dental professionals can make the tax code work in their favor.
Leverage Section 179 for Major Tax Deductions
If you’re thinking about upgrading your operatory chairs, adding a digital scanner, or replacing your sterilization equipment, now might be the time to act.
Section 179 of the IRS Tax Code allows you to deduct the full purchase price of qualifying equipment — up to certain limits — in the year it’s placed in service, rather than depreciating it over several years.
- For 2024, the Section 179 deduction limit is $1,160,000.
- The equipment must be financed or purchased and put into use by December 31, 2024.
So if you buy a $100,000 CBCT machine and install it before year end, you may be able to deduct the entire amount this tax year — a potential tax savings of tens of thousands of dollars, depending on your tax bracket.
Don’t Forget Bonus Depreciation
In addition to Section 179, dentists can also benefit from bonus depreciation, which applies to new and used equipment alike. While bonus depreciation is being phased down over the next few years, it still offers significant savings in 2024.
As Jay Malik often advises, combining Section 179 with bonus depreciation can supercharge your deductions — especially if you’ve hit the Section 179 limit or have additional qualifying purchases.
What Qualifies?
Many types of dental equipment are eligible for these tax breaks, including:
- Imaging devices (e.g., CBCT scanners)
- Chairs and delivery systems
- CAD/CAM systems
- Sterilizers and compressors
- Computer systems and software
Even certain office improvements that have a useful life of more than one year might qualify, depending on how they’re classified.
Financing? Still Counts.
Worried about cash flow? The good news is that equipment financing still qualifies for Section 179 and bonus depreciation. That means you can cash in on the full deduction this year while spreading your payments over time.
Jay Malik often reminds clients, “This is one of the best legal ways to invest in your practice’s growth while slashing this year’s tax bill.”
Act Before Year-End
To take advantage of these equipment-based tax deductions, your purchases must be placed into service before December 31 — meaning installed and ready to use. Even if you order now, shipping delays could jeopardize eligibility if you wait too long.
If you’re unsure what strategy works best for your practice, let’s talk. Every dentist’s situation is different, and the right approach depends on your income, structure, and goals.
Smart tax planning today sets the stage for healthier profits tomorrow. Schedule a strategy session with Jay Malik and the team at Less Tax for Dentists, and give your practice the financial edge it deserves.
