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Investing in advanced equipment like a dental microscope can significantly enhance the quality of care you provide. Not only does it offer precision and ergonomic benefits, but it also comes with financial advantages due to Section 179 of the IRS tax code.
As you may already be familiar with or advised, Section 179 allows businesses to deduct the full purchase price of qualifying equipment, like the Global A-Series microscope, from their gross income, providing substantial tax savings.
Section 179 of the IRS tax code, is designed to encourage small businesses, including many private practices, to invest in their practice and allow them to deduct the full purchase price of qualifying equipment and/or software that has been purchased or financed during the tax year from their total gross income.
In this article, we’ll explore how to calculate Section 179 savings (US purchases only) on a Global A-Series microscope which could lead to estimated cash savings near or over $9,000* when you file by the end of 2024.
*Estimated cash savings for example purposes. Consult your tax professional or ask a Global representative to provide a more accurate estimate for your purchase.
What is Section 179?
Section 179 of the IRS tax code is designed to help businesses invest in essential equipment by allowing them to deduct the full purchase price of qualifying equipment in the tax year the equipment is purchased and put into service. For dental practices, this means that significant investments in technology and equipment, like dental microscopes, can yield substantial tax savings.
In 2024, the deduction limit for write-offs increased to $1,220,000, so you can easily deduct the full amount of any dental imaging equipment or software your practice may need. The Bonus Depreciation is 60%.
In addition, not only can you apply the Section 179 tax credit, but you can also begin adding additional procedures and production to your schedule for an even more savings and an accelerated return on investment.
These limits allow many dental practices to deduct the entire cost of their new Global A-Series microscope, leading to immediate cash flow benefits.
Example Calculation: Section 179 Savings on a Global A-Series Microscope
To help you understand the potential financial impact, let’s break down the Section 179 tax savings calculation.
1. Determine the Cost of the Equipment
The first step is straightforward: identify the purchase price your microscope.
2. Determine the Section 179 Deduction
Assuming your dental practice qualifies for Section 179, you can deduct the full cost of the microscope from your gross income.
3. Estimate the Tax Savings Rate
Next, determine the tax savings rate based on your dental practice’s tax bracket. For this example, we’ll use a typical tax rate of 35% for a small business.
4. Calculate the Immediate Tax Savings
Multiply the cost of the microscope by your tax rate to calculate the tax savings.
5. Determine the Net Cost of the Equipment
After applying the Section 179 savings, calculate the net cost of the Global A-Series microscope to your dental practice.
6. Evaluate the Financial Impact on Cash Flow
This deduction can be particularly impactful for cash flow. By investing in the Global A-Series microscope, not only do you gain a high-precision tool to improve your practice, but you also reduce the immediate financial burden by effectively lowering the cost of the equipment through tax savings.
Estimated Savings Calculation
- Equipment Cost (Global A-Series 6-Step Microscope): $20,000-$28,000
- Section 179 Deduction: $20,000-$28,000
- Estimated Tax Savings (35% tax rate): $7,000-$9,800
- Net Equipment Cost After Tax Savings: $13,000-$18,200
Benefits of Using Section 179 for Dental Equipment
1. Immediate Financial Relief
Section 179 provides immediate cash flow relief, enabling your practice to invest in essential equipment without taking a significant hit to your budget. The reduction in taxable income is reflected in the current tax year, making it a timely benefit.
2. Affordability of Advanced Technology
High-quality tools like the Global A-Series microscope come with substantial up-front costs. By leveraging Section 179, you effectively reduce the financial burden, allowing your practice to acquire top-tier equipment that improves patient outcomes and enhances the efficiency of your operations.
3. Improved Return on Investment (ROI)
The ability to deduct the full purchase price of equipment immediately increases the ROI of equipment purchases. With the cash savings applied directly to your practice, the microscope becomes an even more valuable investment, not only for patient care but also for your practice’s financial health.
Important Considerations
Before claiming Section 179 deductions, be sure to consult with a tax advisor or accountant to confirm that your practice qualifies. The eligibility criteria can vary, and it’s essential to ensure that the microscope is placed in service in the same tax year for which you are claiming the deduction.
Ready to Get Started? Reach Out!
Global Surgical is committed to your success. With improved ergonomics and enhanced visualization, combined with the 2024 Section 179 deduction means unbeatable value for you and your practice.
But, you need to contact us today to reserve your A-Series microscope to take advantage of 2024 Section 179 savings, time is running out. Since you must have the equipment installed by the end of 2024 to qualify for the deduction, you’ll need to make your selection soon. Be sure to ask about our special financing offers to make your used dental equipment purchase even more affordable.
For more information about the Section 179 deduction, visit Section179.org or contact your tax professional. To calculate your savings, check out this handy Section 179 calculator!
