2021 is winding down, and for small business owners—including dentists who own private practices—that means tax season is right around the corner. At Zyris, our goal is to provide the clinical tools and technologies you need to provide the best care possible. But our mission doesn’t stop there. We also want to make sure we go above and beyond to keep your practices healthy and thriving.
That’s why we’re sharing this post all about Section 179. A valuable tax tip that can save you money when April 15th, 2022 rolls around.
What is Section 179?
Long story short, Section 179 is a piece of the IRS tax code that allows businesses to, “deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year.” This means that any new equipment purchased for your practice can be deducted at the full purchase price from your gross income to help encourage your business’s growth. Even better, it’s not too late to qualify for this deduction—you can equip your practice up until December 31, 2021 while saving money on your taxes.
The Fine Print
As with all tax codes, there are limits and exclusions that apply to Section 179. More specifically, as Section179.org notes:
“There are caps to the total amount written off ($1,050,000 for 2021), and limits to the total amount of the equipment purchased ($2,620,000 in 2021). The deduction begins to phase out on a dollar-for-dollar basis after $2,620,000 is spent by a given business (thus, the entire deduction goes away once $3,670,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.”
Despite these limits, all businesses that purchase, finance, and/or lease equipment in 2021 qualify for the deduction. Just remember, eligible equipment must be received and in operation by December 31 this year.
A Final Note
While we take every opportunity to educate our customers and the broader dental community on the perceived advantages of the Section 179 deduction, we are not tax professionals. We are not permitted to provide tax advice, recommendations, or promises. If you plan to take advantage of this deduction, we strongly advise you to discuss eligibility and your specific situation with a tax professional.
At Zyris, we want to see your business thrive, and we’ll continue to encourage your practice to finish the year in the strongest way possible.
To learn more about Section 179 and eligibility requirements, visit www.Section179.org