How Much Will Your Dental Practice Pay Uncle Sam This Year?

I’ve been with Patterson for 16 years and I don’t think there has ever been a better time to purchase equipment and technology. With the state of the economy these past few years, the tax incentives offered to dentists investing in their practice in 2011 are unbelievable. Here are a few of the highlights:

  • 2011 deduction for Section 179 is $500,000 (includes dental equipment and software)
  • This election to expense is in lieu of depreciating the asset over a five- or seven-year life
  • The unused portion of the $500,000 is lost opportunity to lower your taxes
  • Also for 2011 only, there is a special bonus depreciation up to 100% over and above the $500,000 Section 179 allowance

As of now, the 2012 Section 179 deduction drops to $125,000 and the bonus depreciation drops to 50 percent.

These days we are all trying to do more with less, but I encourage you to take a hard look at your practice. An investment in equipment and technology could improve efficiencies, increase productivity, build your practice reputation and help acquire more patient referrals.

We have numerous ways for you to get more information. You can read our Patterson Today Bob Creamer Article, check out thisTax Flyer we’ve prepared or play with our online tax calculator. And make sure to take advantage of your tax savings before December 31, 2011!

The information above provides general guidance in applying tax credits and tax deductions. This should not be construed as providing financial advice, tax advice and/or rendering advice on tax return preparation. Consult your tax adviser to best assess your tax savings.