Running a dental practice means you are always investing back into it. A new chair, a shiny CBCT scanner, or even just updated computers are not just nice to have; they are part of keeping patients comfortable and your team efficient. The tough part is that these upgrades come with a price tag.
That is where Section 179 can help. It is a tax rule that lets you write off the cost of qualifying equipment right away, instead of dragging the deduction out over years. In practical terms, it can shrink your tax bill and deduct cost of equipment for dentists in the same year you install that new piece of equipment.
Let’s look at how it works and how to use it to your advantage.
How Section 179 Works
Normally, when you buy equipment, you have to depreciate it over several years. Section 179 lets you write off the full cost in the year you put it in service. For dentists, this often means things like chairs, CBCT scanners, sterilization equipment, cabinetry and computers.
For 2025, you can deduct up to $2,500,000 of qualifying purchases. The deduction starts to phase out if you spend more than $4,000,000 in a single year. That covers almost any dental practice purchase unless you are doing a full remodel with lots of upgrades at once.
New or Used Equipment Both Count
One of the nice parts about Section 179 is that it doesn’t only apply to brand new purchases. As long as the equipment is new to your practice and used mostly for business, it can qualify.
That means if you find a good deal on a used CBCT scanner or choose refurbished dental chairs, you can usually deduct those costs, just like you would for brand new equipment.
Timing Matters
To qualify, the equipment has to be installed and ready for use by year end. Ordering in December but not having the chair delivered until January means you miss the deduction for that year. Keep receipts, invoices, and installation notes. They are your proof.
How Bonus Depreciation Works Alongside Section 179
If you go beyond your Section 179 election, bonus depreciation may let you deduct the rest in the first year.
For 2025, the rules let you deduct up to 100% of the cost for qualifying property in the first year.
The usual order goes like this. First, you decide which items you want to expense under Section 179. Second, you can use bonus depreciation to cover the rest of the eligible cost. Third, if anything is still left, you fall back on regular depreciation.
That order matters when you are planning your tax deductions, especially if you are trying to match big purchases with your practice’s income for the year.
See It In Action With Real Examples
Example 1: New CBCT scanner
If you spend $140,000 on a new CBCT and have enough taxable business income to cover it, you can deduct the full cost in 2025. If not, the leftover amount that can’t be covered by your taxable income gets rolled forward into future years.
Think of it as saving that portion of your deduction for when your practice has higher profits.
Example 2: Multiple Smaller Purchases
New chairs: 3 x $10,000 = $30,000
Computers and software: 1 x $20,000 = $20,000
Operatory lights: 3 x $2,000 = $6,000
Total: $56,000.
Even smaller items like these can be written off using Section 179, as long as they are installed and ready to use before year end. In this case, your total spending is $56,000. Since that is well under the annual limit, you could deduct the entire amount in 2025, if your practice has enough taxable income.
Example 3: A Big Year Of Spending
If you are planning a large remodel or buying a lot of equipment at once, your spending could push past the Section 179 phase-out threshold of $4,000,000.
Once you go over that amount, the deduction begins to shrink and eventually disappears. In that situation, it may be smarter to spread purchases across two tax years or lean more on bonus depreciation. The right mix depends on your practice’s income and tax picture.
Where Planning to Deduct Cost of Equipment for Dentists Come In
Section 179 can be a real cash flow saver for dentists. But just because you can deduct everything at once, does not always mean you should. Sometimes, spreading deductions is smarter, especially if you expect a higher income in future years.
Here are other things to consider when planning big equipment purchases:
- Income limit: You can only take Section 179 up to the amount of taxable income your practice generates. Any unused amount can carry forward to future years.
- State rules: Not every state follows federal Section 179 rules. Be sure to check how your state return treats it.
- Financing: You can still deduct the full cost, even if you finance the equipment. That can be a big cash flow advantage.
How Core Advisors Can Help
Buying equipment for your practice is a big decision, and so is how you handle the tax side of it. Section 179 can be a powerful tool, but it works best when it is part of a bigger plan that takes your practice’s income, timing and future goals into account.
That is where we come in. At Core Advisors, we help dentists map out purchases so the numbers make sense today, and down the road.
If you are planning to upgrade equipment this year, reach out to our team. We will walk you through the numbers and help you choose the right strategy.
