In 2021, Atlas Resell shared a breakdown of how Section 179 worked for dental clinicians. Assisting practices in understanding the deduction limit,  the importance of placing equipment into service before year-end, and how refurbished equipment could qualify. Since then, a lot has changed. With updated deduction limits, expanded opportunities, and stronger financial incentives, Section 179 may be more beneficial today than it was a few years ago. Here are five important updates every dental practice should know.

1. Deduction limits are significantly higher

In 2021, the maximum deduction available at that time was a little over one million dollars. Today, Section 179 states that the deduction limit is much higher, giving dental practices far more room to invest in new or refurbished equipment. This expanded limit makes it easier to write off large purchases such as imaging systems, digital scanners, sterilization equipment, treatment chairs, computers, and software in the same year they are installed.

2. Bonus depreciation has been fully restored

When Atlas shared its 2021 update, bonus depreciation was available at 100 percent, and many practices used it alongside Section 179. Section179.org now confirms that 100 percent bonus depreciation has been restored for qualifying property placed into service in the current tax year. This means dental practices can use Section 179 first, then apply bonus depreciation to the remaining cost. For practices making larger investments, this combination can significantly reduce taxable income.

3. Refurbished and used equipment still qualifies

When it comes to upgrading equipment, practices still have the option to deduct refurbished or used items under Section 179. Both new and used equipment qualify for the deduction as long as the equipment is considered new to the business and used primarily for business purposes. This continues to be a major advantage for practices looking for cost-effective upgrades while still benefiting from the tax deduction.

4. More types of property are now recognized as eligible

Many clinicians may be surprised at how broad the current Section 179 allowances have become. Earlier guidance focused on deductions for practice equipment, software, and imaging tools. Now, updated information highlights an even wider range of qualifying investments, including interior improvements to nonresidential buildings and a larger selection of operational equipment. For dental practices upgrading operatories, adding digital tools, or modernizing their workflow, the expanded guidelines provide more flexibility than before.

5. Timing and service requirements still matter

In 2021, Atlas Resell stressed that equipment had to be purchased and placed into service by December 31 to qualify. Section179.org continues to reinforce this rule. A purchase alone is not enough. The equipment must be installed and ready for use within that tax year. With more advanced technology and longer installation timelines, practices benefit from planning ahead and keeping clear records. Section179.org also notes that the Section 179 election must be made on the tax return for the year the equipment is placed in service, which makes good documentation essential.

What this means for your dental practice

Section 179 has grown in ways that strongly support modern dentistry. Higher deduction limits, fully restored bonus depreciation, continued eligibility for refurbished equipment, and a wider range of qualifying property all give dental practices powerful financial tools for upgrading equipment. If you are planning to invest in new or refurbished imaging technology, operatory equipment, software, or digital systems, this may be one of the best times to take advantage of the deduction. 

If you want to use Section 179 this year, there is still time to purchase, receive, and install your equipment through Atlas Resell. Our team offers quick logistics, coordinated delivery, and professional installation services designed to help practices get equipment placed into service before the end of the tax year. You can review our installation management support at https://atlasresell.com/pages/installation-management-services. 

Atlas Resell is not a tax, financial, or legal advisor. This information is provided for general educational purposes only. Please consult your tax or financial professional to determine how Section 179 applies to your specific situation.