On December 18, the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) was passed by both the House and Senate and signed into law – expanding the Section 179 deduction limit to $500,000 on a permanent level.
According to Section179.org:
“Businesses exceeding a total of $2 million of purchases in qualifying equipment will have the Section 179 deduction phase-out dollar-for-dollar and completely eliminated above $2.5 million. Additionally, the Section 179 cap will be indexed to inflation in $10,000 increments in future years.”
For the dental community, this means the ability to expense up to $500,000 in capital expenditures each year.
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The PATH Act passage brings more good news: 50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016, and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.
Read the summary from the Ways and Means committee here.