Section 179 for Dental Equipment (2026)

What Section 179 is

Section 179 is a tax code provision that lets a business elect to deduct the full purchase price of qualifying equipment in the year it is placed in service, instead of capitalizing and depreciating it over several years. For a dental practice buying a scanner or chairs, that can mean a large deduction in the same year the equipment starts earning — rather than spreading it across a depreciation schedule.

The deduction applies to qualifying equipment placed in service during the tax year. It is an election, not automatic — your CPA makes it on your return. And it has a cap and a phase-out, which change annually.

2026 limits and phase-out

For tax years beginning in 2026, the Section 179 deduction limit is $2,560,000. The limit begins to phase out — dollar for dollar — above $4,090,000 of qualifying equipment purchases, per IRS Rev. Proc. 2025-32 (as reported at smbcompass.com). In plain terms: if your practice places more than $4.09 million of qualifying equipment in service in 2026, the deduction you can elect shrinks.

These figures are set by the IRS and adjust for inflation; the numbers above are specifically for tax years beginning in 2026. [VERIFY against the final published figures and your CPA's reading of Rev. Proc. 2025-32.]

The December 31 deadline

The timing rule that catches practices off guard is "placed in service." Equipment must be placed in service by December 31 — not merely ordered, paid for or delivered. For a chair or a scanner, that generally means installed, set up and ready for use in the operatory.

If you are aiming for a 2026 deduction, order early enough that delivery, installation and any setup land before year-end. A scanner that arrives in January is a 2027 placed-in- service date, not 2026 — regardless of when the invoice was paid.

Lease caveats

Leased property may not qualify for Section 179 depending on the lease terms (IRS Pub. 946). The structure matters:

• A $1 buyout lease often behaves more like a purchase and may qualify.
• A fair market value (FMV) lease may not qualify, because the lessor — not you — holds the equipment's economic interest.

This is exactly where your CPA's reading of your specific lease document matters. Do not assume a lease qualifies because the sales rep said so — confirm with your CPA in writing.

Finance the equipment and still deduct it

You do not have to pay cash to elect Section 179. Financed equipment that is placed in service by December 31 and otherwise qualifies may be deducted in full in that year, even though you are still making payments. That is one reason practices time year-end equipment purchases with financing.

Equipment financing is arranged through our funding partner, Victory Capital Financing, subject to credit approval. The move: talk to your CPA about whether your planned purchase qualifies, then talk to Our Financing Team about financing before year-end.

Before you buy

• Confirm the 2026 limit and phase-out with your CPA.
• Confirm whether your lease structure qualifies.
• Back-plan from December 31 — order early enough to install.
• Ask Our Financing Team about financing through Victory Capital Financing.

Frequently asked questions