Section 179 is a tax incentive that allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. Qualifying equipment must be tangible property used more than 50% of the time for business use. The deduction is proportional to the percentage of business use. Section 179 tax deductions for equipment can include machinery, computers, software, office furniture, vehicles, or other tangible goods. Equipment must be purchased/financed and put into service by 11:59, December 31, 20221.
The Section 179 tax deduction gets its name from Section 179 of the IRS Tax Code. This section of the Tax Code states that businesses may deduct up to the full purchase price of qualified business equipment from their taxes within the same tax year2.
To qualify for a Section 179 tax deduction for equipment purchases on your 2023 taxes, you must purchase and place qualifying dental equipment and technology into service by 12/31/2023, in addition to meeting other eligibility criteria under Section 179.*