If you’re a dentist or practice owner trying to wrap up the year with smart financial decisions, you’ve probably heard about the Section 179 tax deduction. And if you’re like most people we speak with, you may be wondering what it actually means for your practice and how to take advantage of it before December 31.
This guide explains Section 179 in simple, straightforward language. No complicated tax jargon. No hype. Just practical guidance based on how dental professionals upgrade their equipment every year.
What Section 179 Actually Does
Section 179 allows you to deduct the full cost of qualifying equipment in the same year you purchase it, instead of depreciating it over several years.
Here’s the quick version, without the noise:
- New, used, and refurbished dental equipment typically qualifies.
- The 2025 deduction limit is $2.5 million.
- The equipment must be installed and in use by December 31.
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100% Bonus Depreciation is back in effect for 2025 (for most purchases), meaning you can often deduct the full cost of equipment even if you exceed the Section 179 cap.Â
- You can finance equipment and still take the full deduction upfront.
Your CPA can walk you through the official IRS rules, but for busy dental practices, the key takeaway is this: Section 179 helps reduce your tax burden while allowing you to upgrade your equipment strategically.
What Dental Equipment Typically Qualifies
Most essential clinical, operatory, and imaging equipment qualifies under Section 179.
This includes:
- CBCT systems
- Digital X-ray sensors
- Panoramic units
- Dental chairs
- Delivery systems
- Operatory packages
- Vacuums and compressors
- Intraoral scanners
- Cabinets and carts
How Different Practices Use Section 179
Not every practice uses Section 179 in the same way. Here are the patterns we see year after year:
1. Startup Practices
Startup dental practices often use Section 179 to get essential equipment in place early. It helps:
- Speed up ROI on new operatories
- Create room in the budget for hiring and marketing
- Equip the practice fully from day one instead of delaying growth
2. Growing General Practices
Established practices usually leverage Section 179 to:
- Bring in a CBCT and expand into implants, airway, or endodontics
- Add treatment rooms
- Replace older delivery systems
- Upgrade hygiene efficiencies with better imaging
This is where Section 179 ties directly to increased production potential.
3. Multi-Location Groups and DSOs
DSOs and group practices often depend on Section 179 for:
- Standardizing equipment across locations
- Keeping annual capital expenditures predictable
- Scaling operatories efficiently
- Rolling out imaging and scanners across multiple sites
Because installation timing matters, DSOs plan these upgrades early.
Common Mistakes Practices Make With Section 179
We see these issues pop up every Q4:
1. Waiting too long
If your equipment isn’t installed by December 31, you can’t claim the deduction.
2. Buying imaging with features they don’t need
FOV, software modules, and exposure capabilities can vary widely.
If you’re unsure, ask, this is where trusted guidance helps.
3. Overlooking installation timelines
Room prep, electrical work, and shipping can all affect your deadline.
4. Assuming everything is in stock
High-demand equipment, especially CBCT units and operatories often sells out long before December.
5. Undervaluing refurbished options
Refurbished equipment can deliver the same clinical value with a lower upfront cost, and it still qualifies for Section 179.
Explore refurbished options here.
Financing + Section 179: A Smart Pairing
One of the most overlooked advantages:
You can finance equipment and still take the full Section 179 deduction.
This helps practices:
- Keep cash flow healthy
- Upgrade sooner
- Reduce their tax burden while spreading payments out comfortably
This is one reason many dentists choose to finance CBCTs, operatories, and utility room equipment near year-end.
What to Prioritize if You’re Short on Time
If you want to take advantage of Section 179 but can’t overhaul your entire office right now, start with upgrades that deliver immediate value:
- CBCT or panoramic X-ray
- New operatory setup
- Digital sensors
- Vacuum or compressor replacements
- Cabinets that improve workflow and infection control
All of these qualify and bring daily, practical improvements to your practice.
Final Takeaway: Section 179 Is a Practical Tool for Growing Your Practice
Dentists use Section 179 every year because it works. It’s simple, powerful, and built to help small businesses invest in better equipment without unnecessary financial strain.
The real benefits come from:
- Choosing equipment that matches your clinical goals
- Planning ahead for installation
- Working with a partner who can deliver reliably
- Matching your upgrades to your practice’s growth strategy
If you’d like help figuring out what fits your practice, whether it’s imaging, operatories, or utilities, our team can walk you through options, timelines, and installation planning.
Smart upgrades lead to stronger practices, and Section 179 simply helps you get there faster.
Section 179 for Dentists in 2025: Making the Most of Your Year-End Purchases