Most dental and medical equipment can be written off in the year you buy it rather than depreciated over five or seven years. The tax code gives practice owners two powerful tools for this. Section 179 expensing and bonus depreciation both let you take the full deduction upfront instead of spreading it across the useful life of the asset.

Section 179 lets you expense equipment immediately up to a limit that adjusts each year. For most practice purchases like dental chairs, digital imaging equipment, or laser systems, the limit is high enough that the entire cost qualifies. You place the equipment in service and deduct it on that year’s tax return.

Bonus depreciation works similarly but without the same income limitations. With 100 percent bonus depreciation, which is back and permanent starting in 2026, you can write off the entire cost of qualifying equipment in the year you buy it. This applies to new and used equipment as long as it’s new to your practice.

The tax impact can be significant. Buy a $150,000 piece of imaging equipment and you might deduct the full amount against your income that year. For a practice owner in a high tax bracket, that could mean $50,000 or more in tax savings compared to spreading the deduction over many years. This is real money that stays in your pocket instead of going to the IRS.

Timing these purchases matters. If you’re having a high-income year, buying equipment before December 31 creates a big deduction when you need it most. If next year looks like it will be even more profitable, it might make sense to wait. This is where tax planning comes in. Working with someone who understands your full tax picture helps you decide when the purchase makes the most strategic sense.

On the bookkeeping side, the equipment needs to be recorded correctly as a fixed asset. That means capturing the purchase price, the date you placed it in service, and the financing terms if you took out a loan. Even though you’re taking an accelerated deduction for tax purposes, your books still need to reflect the asset and any loan payments accurately. Clean records in QuickBooks Online make it straightforward to hand off the information at tax time, and small business bookkeeping services that understand practice accounting will set this up properly from the start.

One thing to keep in mind is that this applies to equipment used in your practice, not personal assets. The equipment has to be used primarily for business to qualify, and there are rules about what counts. If you’re planning a significant purchase, it’s worth discussing it ahead of time so you understand exactly what you can deduct and when.

If you’re considering a big equipment purchase for your practice, schedule a consultation to talk through the timing and how it fits with your overall tax picture.