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At PracticeCFO, we specialize in helping doctors maximize their financial efficiency while avoiding costly tax mistakes. One of the most powerful tax-saving tools available is the Section 179 deduction, which allows for the immediate expensing of qualifying business equipment like dental chairs, imaging machines, and office technology. However, while this deduction can be incredibly beneficial, timing is critical to avoid unintended financial consequences.
Section 179 allows doctors to deduct the full cost of equipment purchases in the year they are placed into service, rather than depreciating them over several years. This can result in significant tax savings in the short term. However, the way you pay for the equipment can determine whether this deduction helps or harms your financial position.
We strongly recommend that doctors only take the 179 deduction when they have paid for the equipment in cash. Here’s why:
A fundamental principle of smart tax planning is matching tax deductions with cash outflows. When you pay for equipment in cash and take the 179 deduction, the tax benefit aligns with your actual financial commitment. This ensures that you are not left in a situation where you’ve already claimed a large deduction but are still responsible for years of loan payments without a corresponding tax break.
At PracticeCFO, we take a proactive approach to tax planning, ensuring that our clients not only maximize deductions but also protect their long-term financial health. Before making any major equipment purchases, we encourage doctors to consult with us so we can evaluate the best strategy for their unique situation.
By carefully considering when and how to use the Section 179 deduction, you can avoid costly tax pitfalls and maintain strong cash flow for years to come.
Need guidance on your tax strategy? Reach out to PracticeCFO today and let’s ensure your financial future is secure.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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