With the rules pertaining to Section 179 having gotten more generous in 2025, it’s worth taking the time to fully understand this particular provision in the tax code that allows businesses to deduct the full cost of equipment that qualifies, in the same year that it’s placed in service, instead of the deduction being spread out over the course of its useful life.
Dentists must always invest in new equipment if they’re to continue providing patients with outstanding levels, and the cost of this can quickly mount up. With help from tax accountant for dentists, Section 179 can be applied to make sure that those investments have a tax benefit that’s immediate, rather than slow depreciation over a number of years.
What does this really mean for dental practices?
Having a simple, but no less powerful impact, Section 179 provides dentists with the opportunity to make immediate tax savings that can then be put directly back into the practice. Let’s say as a dentist, you purchase a CBCT scanner for $150,000, the entire amount is deductible in that year, instead of it depreciating at an amount of around $21,000 every year, for seven years.
How to make Section 179 work for the growth of your dental practice
More than just tax savings, Section 179 is also about aligning a practice’s equipment investments, with its growth.
Upgrading a dental operatory, for instance, can help a practice improve efficiency immediately, and directly enhance patient experience, while also generating a tax deduction upfront.
That said, it’s important to remember that if you invest $75,000 on your dental practice, although you might save a big chunk in taxes (let’s say $25,000), it’s still a big and costly amount of money to spend. The real payoff only comes if an investment also drives the growth of a practice.
The role of a specialist dental tax professional
Generic tax advice is of no benefit to dental practitioners whatsoever. The healthcare industry as a whole has some unique and very specific tax considerations and opportunities, and only a specialist tax expert can help dentists maximize these.
From the finances of a dental practice, to decisions around entity structure selection and equipment depreciation, a tax professional specializing in the dental industry will understand all of this and use their expertise to co-ordinate Section 179 with the cashflow of a practice, long-term tax strategies, and plans for expansion.
If your existing tax preparation centers around compliance and doesn’t allow for the strategic planning of equipment purchases, you could well be missing out on some vital opportunities.
What should your practice do now?
December is too late to start thinking about Section 179; engage with specialized dentist tax planning well in advance of the year-end, to ensure that you can find a tax planner with the time and skill to devote to you and the specific needs of your practice. Engaging with them early also helps make sure you aren’t penalized for missing deadlines.
As long as you have a clear idea of what your equipment needs are for the upcoming year, a tax planner will take it from there.
Remember that Section 179 and its higher limits are permanent, meaning that dental practice owners and dentists have more flexibility than ever before. When this particular tax provision is used wisely, it can help dental professionals reinvest in their practices, enhance the care and treatment they provide for patients, and keep more of what they’ve worked so hard to earn.
