P.O. Box 2129
Sag Harbor, NY 11963
ph: 631-871-7976
fax: 631-614-4363
alt: 631-899-3240
tcahill55@optonline.net
(click on any photo for more information)
Equipment Purchasing
A practice that invests in “capital equipment”—dental equipment, practice management systems Digital imaging systems—probably prefer to deduct the cost in a single tax year, rather than a little at a time over multiple years. Federal tax law allows you do this, under tax code Section 179—within certain dollar limits.
The 2007 limit is $112,000! After that amount normal depreciation schedules for remaining balances apply. Capital-equipment expensing is limited once fixed-asset additions for the year exceed $410,000.
| Acquired Equipment Cost | |||
| $40,000 | $80,000 | $120,000 | $160,000 |
| Deductions Section 179 | |||
| $40,000 | $80,000 | $108,000 | $108,000 |
| First-Year Depreciation 20% of Balance | |||
| N/A | N/A | $1,600 | $9,600 |
| Total First-Year Expensing | |||
| $40,000 | $80,000 | $113,600 | $121,600 |
| 100% | 100% | 94.7% | 76.0% |
P.O. Box 2129
Sag Harbor, NY 11963
ph: 631-871-7976
fax: 631-614-4363
alt: 631-899-3240
tcahill55@optonline.net