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DB Column: Dentistry & Finances by Keith Drayer

April 6th, 2009 · 2 Comments

big-smile1Our DentalBlogs financial wiz and guru, Keith Drayer, Vice President of Henry Schein Financial Services, gives us four reasons dentists should be happy about tax season in 2009.

1. Interest Rates are low. We are still 2% lower interest rates then a year ago. The savings over a 5 or 7 year financed project are substantial.

2. Section 179 $250,000 limit. This is a “use it or lose it” benefit to lower taxable income. 2010 it is scheduled to go down to $125,000 + an amount indexed for inflation.

3. Fifty-percent Bonus Depreciation in 2009 (phase out at $800,000). Section 179, 50% Bonus Depreciation & first year expense write off should cover approximately 70% – 100% of the projects the majority of our customers undertake.

4. “Qualified leasehold improvement property placed in service before Jan. 1, 2010 as 15-year MACRS class property. When Congress enacted a 15-year MACRS depreciation period for qualified leasehold improvement property, they stated that taxpayers shouldn’t be required to recover the costs of certain leasehold improvements beyond the useful life of the investment. A 39-year recovery period (which is the recovery period that usually applies for buildings and their structural components) extends well beyond the useful life of investments in leasehold improvements. Also, although lease terms differ, Congress believed that lease terms for commercial real estate typically are shorter than the 39-year recovery period. Additionally, in the interests of simplicity and ease of administration, a uniform period for recovery of leasehold improvements was thought desirable.


Tags: Dentistry and Finances by Keith Drayer

2 responses so far ↓

  • 1 Larry Silver // Apr 7, 2009 at 1:33 pm

    Great data, I’ll pass this on to our clients.

  • 2 Larry Silver // Apr 7, 2009 at 1:33 pm

    Great data, I’ll pass this on to our clients.

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