Dental Equipment Depreciation Question

Hi, I have few questions regarding taxes on a scratch startup practice. My accountant told me that anything removable like equipment/furniture/cabinets are tangible expense which you can deduct right away. However, construction expenses such as paint, ceiling, electricity, plumbing is considered lease hold improvement which will require 39.5 year amortization (Yikes!).

My question is:

1. For equipment installations (Chairs, Compressors, Vacuum) , can ‘Installation labor fee’ be deducted immediately? (I hope they are since this equipment is removable.)

Generally, the costs incurred to get the equipment in service, including labor, sales taxes and fees are treated as part of the asset cost and therefore deductible along with the cost of that asset depending on how you choose deduct whether it’s using Sec 179 or normal depreciation.

This first appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at

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