Tim Lott-Your Trusted Dental CPA
Tim Lott-Your Trusted Dental CPA
We provide the answers, as well as the practice plans to help you secure your dental goals.
Tim Lott, CPA, CVA

Free Cerec Machine !

3/21/2013 10:02:08 AM   |   Comments: 0   |   Views: 652
So we get a question on our FB page "an equipment vendor told me that if i buy a Cerec Machine with the tax code as it is today i can basically get the machine for free, is that true ?"

My first thought for a reply was "have you ever heard the saying, "if it's too good to be true it probably is ?" however, i thought better of it & simply replied "no". Well, maybe there was more to the response...but effectively, NO !

certainly with Code Sec. 179 a taxpayer has the ability to take a lage deduction on their Cerec Machine, maybe 100% of the cost, however, that doesn't make it "free" does it ?

So you spend $100,000 for a machine & lets assume you paid cash, you're down $100,000 in your checking acount, right ?

now, lets assume you get a deduction of $100,000 and you're in a combined 40% income tax bracket. so you've just "saved" $40,000 in income taxes. lets also assume when you file your income tax return you'll get a refund for the $40,000. so you're checking account just went up $40,000, right ?

so lets review....MINUS $100,000 PLUS $40,000 = -$60,000...aren't you still short $60,000 ?

That ain't fee !

P.S. Couldn't find the spell check...i hope there's no typos.....
Category: Tax Strategies
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