Understanding Bonus Depreciation And Section 179 Together

Dental practices frequently invest in high value equipment. Understanding how Section 179 and bonus depreciation work together can help you reduce taxable income and improve cash flow when purchasing new technology or upgrading your office.



Both deductions allow businesses to write off equipment faster than traditional depreciation schedules. When used strategically, they can create meaningful tax savings for dental practice owners.

What Section 179 Allows In 2026

Section 179 lets businesses deduct the cost of qualifying equipment in the year it is placed into service instead of spreading the deduction across several years. For dental practices, this may include items like digital scanners, imaging systems, dental chairs, and computers.

For the 2026 tax year, the maximum Section 179 deduction is $2,560,000. However, the deduction begins to phase out when a business places more than $4,090,000 of qualifying equipment into service during the year.

Another key rule is that Section 179 deductions cannot exceed the taxable income of the business.

How Bonus Depreciation Works

Bonus depreciation allows businesses to deduct a large percentage of the cost of eligible equipment in the first year it is used.

Under current tax law updates, bonus depreciation has been restored to 100% for qualified property placed into service after January 19, 2025.

This means many businesses can deduct the full cost of eligible assets in the first year rather than depreciating them over time.

Unlike Section 179, bonus depreciation is not limited by taxable income, which means it can sometimes create a net loss for the business.

How These Deductions Work Together

Dental practices often use both deductions as part of the same tax strategy.

A common order looks like this:

• Apply Section 179 to specific equipment purchases
• Apply 100% bonus depreciation to remaining eligible assets
• Depreciate any remaining balance using standard schedules

This layered approach helps maximize deductions while maintaining flexibility.

Examples Of Qualifying Dental Equipment

Many dental purchases may qualify, including:

• Digital imaging systems
• CAD CAM technology
• Dental chairs and delivery units
• Practice management software

Final Thoughts

Section 179 and bonus depreciation can work together to create significant tax savings when dental practices invest in equipment. Planning purchases carefully and reviewing deductions with your CPA can help ensure you take full advantage of these opportunities.

Call 717-263-8713 to schedule a consultation at Gray Pilgrim & Associates in Chambersburg, PA 17201.