IRS Tax Code Section 179 2024 Equipment & Technology Credit

Invest In New Technology Without Breaking the Bank!

Section 179 of the IRS tax code allows dental practices to fully deduct up to $1,220,000 worth of new equipment and equipment upgrades. With dental practices updating their current environment by implementing new standards of care, a Section 179 2024 tax deduction could be a win-win.

What is Section 179?

Section 179 is a tax deduction for businesses, including dental practices, that receives its name from Section 179 of the IRS Tax Code. Section 179 allows dental practices to deduct up to the full purchase price of qualified equipment, technology, off-the-shelf software, and other qualifying purchases from their taxes within the same tax year.

What Purchases Qualify for a Section 179 Deduction?

New equipment and technology are great examples of tax-deductible expenses for dentists with Section 179. Other types of equipment that qualify for the deduction include:

  • Computers
  • Software
  • Hardware
  • X-Ray Machines
  • Office Furniture
  • Office Equipment
  • And more!

How to Claim a Section 179 Tax Deduction for My Dental Practice?

To find out if this deduction is right for you, talk to your accountant, as they can advise on the correct protocols and paperwork you’ll need to apply. If you are ready to make a purchase, let Pact-One help by acting as your advisor with which equipment or software to purchase based on your network!

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Have more questions? Download our Section 179 FAQs Infographic!

Section 179 FAQs

Frequently Asked Questions many dentists and practice owners have regarding an IRS Section 179 tax deduction

Section 179 is a tax deduction for businesses, including dental practices, that receives its name from Section 179 of the IRS Tax Code. Section 179 allows dental practices to deduct up to the full purchase price of qualified equipment, technology, off-the-shelf software, and other qualifying purchases from their taxes within the same tax year, rather than requiring that the purchase be depreciated over time.

Qualifying purchases for dental practices include equipment, technology, software, computers, office furniture, and more. To qualify for a Section 179 deduction, these purchases must be used for business purposes 100% of the time. See the IRS guidelines for a comprehensive list of qualifying purchases.

The maximum tax deduction for 2024, is up to a $1,220,000 tax deduction.

In 2024, the equipment purchase limit for small businesses, including dental practices, is $3,050,000.

One of the great things about the Section 179 tax deduction is there are more options than you might realize for the type of equipment and technology you can claim. Equipment or technology purchases can be either new or pre-owned, giving you a broader range of choices.

Eligible: Equipment financing agreements, Equipment leases with a $1.00 purchase option (capital leases), Loan Agreements
Not Eligible: Operating Leases - those with a purchase option (i.e., 10% Purchase Option Leases, Fair Market Value Leases) at the end of the agreement DO NOT qualify for a Section 179 deduction.

In order to take advantage of a Section 179 tax deduction for 2024, you will need to have purchased the qualifying equipment or technology this year for your business. This means you have until December 31, 2024, to purchase and place the equipment or technology into service if you seek to deduct it from 2024 taxes.

After determining if a Section 179 deduction is right for you, you should work with your tax advisor to determine your deduction amount. Using the proper forms from the IRS, you’ll simply select the dollar amount of equipment under Section 179. You’ll include the form in your tax return when you file. Please consult with a qualified professional tax advisor to determine your eligibility for a Section 179 tax deduction.

It’s a good idea to calculate potential tax savings in advance. You’ll want to discuss with a tax professional to determine if taking the Section 179 deduction is the right choice for your practice and tax situation. You have the opportunity to take a Section 179 tax deduction in the same year you place your equipment in service.

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