Jerry Bernard my friend, mountain biking buddy and CPA with Price Kong in Phoenix wants me to remind you that there are some significant tax incentives for dentists to purchase new technology before the end of the year.
The Section 179 deduction for equipment purchases has been expanded. The maximum 2013 deduction limit has been increased to $500,000 and it can even be applied retroactively to purchases made in 2012. First-year, 50 percent bonus depreciation, has also been extended.
The 2012 limit for the deduction against taxable income for qualifying equipment was $139,000, with a maximum investment limitation of $560,000. The deduction was scheduled to drop in 2013 to $25,000, with a maximum of $200,000. However, the deduction limit has instead been raised to $500,000, with a maximum investment limitation of $2,000,000
Section 179 Deduction is available for most new and used capital equipment, and also includes certain software. Bonus Depreciation can be taken on new equipment only (no used equipment, no software). There are a lot of other rules that will affect your personal situation, contact Jerry or your personal CPA for details.
If you are considering a major high tech purchase like a CAD CAM or CBCT buying before the end of the year could save you some big bucks. Also you need to replace any computer you may have that is still running Windows XP. Section 179 will help with that as well.