There are many reasons why right now is the best time to open a new dental practice, remodel your existing practice, or purchase new dental equipment. The 2013 Section 179 deduction benefit of $500,000 has never been higher and the bonus deduction applies up to $2,000,000. Additionally, higher tax rates than prior years make all deductions more valuable and it’s relatively easy to secure attractive fixed-rate financing.
Looking at this table shows how much you can save just over last year.
Section 179 2013 2012
Equipment/Technology Software $300,000 $300,000
Section 179 Benefit $300,000 $300,000
50% Bonus Depreciation Available $30,500
Total First Year Deduction $300,000 $169,500
Potential Tax Bracket 39.6% 35.0%
Cash Savings $118,800 $59,325
Even though these benefits apply through December 31, 2013, it’s best not to wait to make any major equipment purchases. You may actually limit your options as product supplies diminish or become unavailable.
And, remember, mid-year is the best time to tackle tax planning because you still have time to re-assess the year and put strategies into action that will help you take advantage of tax credits.
For more information, read the article Your Tax Incentives Have Never Been So Valuable by Keith Drayer, Vice President of Henry Schein Financial Services.