Practice Finance

Section 179, explained for practice owners

What the deduction does, what changed this year, and what a chair actually costs after tax.

When buying equipment for your practice, the tax code normally makes you write it off slowly. A few thousand dollars a year, across five or seven years, until the cost is finally accounted for. Section 179 lets you skip that process and take the entire purchase price off your taxable income the year the equipment goes into use.

What's New in 2026

This year, Congress raised the limit and made it permanent, with the figures adjusted for inflation each year. For tax years beginning in 2026:

Maximum deduction: $2,560,000
Phase-out begins once qualifying purchases pass $4,090,000
Bonus depreciation is back at 100% and covers whatever Section 179 does not

Timing is Key!

The deduction applies to the year equipment is placed in service, rather than the year you sign the purchase order. Delivered and installed in December counts; however, delivered in December and installed the first week of January, doesn't... and you wait a full year for the write-off.

Make sure to start the process as soon as possible so that manufacturing and installation both happen before December 31.

Other Considerations

The equipment has to be used more than half the time for business, which practice equipment rarely has any trouble meeting. Income is the tighter constraint: your Section 179 deduction cannot exceed your taxable business income for the year. Had a lean year? Deduct what you can and carry the balance forward.

The deduction gets claimed on IRS Form 4562. Your accountant handles this part, but it helps to know what to ask for.

Estimate your savings

Enter a purchase amount to see the deduction and what the equipment costs you after tax.

Equipment cost

Your tax rate

Section 179 deduction $0

Bonus depreciation (100%) $0

Estimated first-year tax savings $0

Net cost after savings $0

To claim this for the 2026 tax year, the equipment has to be installed and in use by December 31. Build and delivery time counts against that date.

Want this estimate in writing?

We'll email these numbers over so you have them on hand, and let your Boyd rep know you're aiming for a December 31 install. They'll work backward from that date, line up the build and delivery, and make sure nothing about the timeline is left to chance.

First name

Last name

Phone

Practice name

Specialty

Purchase timeline

Ready to talk specifics? Request a full quote

RESOURCES

IRS Instructions for Form 4562
The source that matters. Dollar limits, what counts as Section 179 property, and how the election is made.
Section179.org
An independent reference that tracks the current year limits and the placed-in-service rules in plainer language than the IRS uses.
Block Advisors: Section 179 guide
Useful if you want worked examples of the phase-out and the income limitation.
IRS Publication 946, How to Depreciate Property
The long version, at irs.gov. Worth a look if you are weighing Section 179 against bonus depreciation.

This estimator is provided for general informational purposes only and is not tax advice. It assumes the equipment is used more than 50% for business and that your business has sufficient taxable income to claim the full deduction. Section 179 deductions cannot exceed your taxable business income; unused amounts may carry forward. Actual results depend on your entity type, income, state taxes and other factors. Consult a qualified tax professional before making a purchase decision.

Prepared on the basis of federal tax law in effect as of January 1, 2026, including the Section 179 limitations published in Rev. Proc. 2025-32. Figures reflect the 2026 tax year and do not account for state or local tax treatment. Subsequent legislative, regulatory, or administrative developments may alter these amounts, and Boyd Industries, Inc. assumes no obligation to update this estimate.