Sense of Accomplishment or sense of Urgency
October is one of the most important months of the year for businesses. It marks the fourth quarter of the fiscal year and creates a sense of accomplishment or urgency depending on your circumstance. Retailers depend on a strong Holiday Season to hit their forecasts and small businesses ramp up activities to close as much business as possible by year end. Dentists encourage patients to begin or complete treatment and the hygiene schedule is usually packed to accommodate patients determined to utilize their annual insurance benefit.
Software, Equipment and Technology Acquisition
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By the end of October most practice owners are painfully aware of their tax obligations and prefer to make an investment in their practice in lieu of making a payment to Uncle Sam.
The government, in an effort to stimulate the economy, created an incentive for businesses to modernize and digitize the work place. That is why so many small businesses and practice owners have used the section 179 deduction when acquiring capital equipment. This year, the section 179 deduction limit is $500,000.00. It may be applied towards equipment, technology and software. Dentists are advised to consult their CPA prior to investing in technology. They should understand their tax liability and how the section 179 deduction can be part of their equipment acquisition and financing strategy. *All 2016 purchases must be financed and delivered by the end of the day on 12/31/2016 to qualify.
Here is an example of the Section 179 deduction calculation.
In this example we equipped a modern day dental office with five operatories;
Dr. Yenom just purchased an iCAT, PlanFit CadCam system, 5 rooms of Adec, a combination laser, compressor, vacuum, computers, Dentrix and Dexis. The cost was roughly $650K.
Equipment/Software Acquisition – $650K
First Year Write off – $500K
50% Bonus First Year Depreciation – $75K
Normal First Year depreciation – $15K
Total First Year deduction – $590,000.00
Cash Savings at a 35% tax Bracket – $206,500.00
Equipment/Software Cost after Tax (35% bracket) – $443,500.00
Many analysts expect interest rates to go up after the Presidential election.
Dentists with plans of acquiring equipment in 2017, may want to act now!
The GNYDM is a wonderful destination trip for dentists seeking continuing education and for those looking to acquire equipment and technology. Dentists who attend the GNYDM can choose from hundreds of CE courses presented by world renowned clinicians and practice management lecturers.
Attendees get to walk the convention floor, kick some tires and network with colleagues. In the evening, you’ll get to enjoy the sights, sounds and night life of the Big Apple. There are thousands of restaurants and dozens of great shows on Broadway this time of year. On Wednesday, November 27th at 7pm, thousands of people will go to Rockefeller center to witness the 84th Christmas tree lighting ceremony.
The GNYDM vendor exhibits start on Sunday, November 27th and run through Wednesday, November 30th, 2016. For more information and the show guide, check out;