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Tax strategy · Practices and device companies
Imaging, lasers, surgical systems, CBCT scanners and dental chairs are major investments for a practice. Developing those devices is a major research investment for a manufacturer. Both sides have specific tax rules and credits we plan around.
Serving United States, Virginia, Washington, DC, Maryland.
What we handle
For medical, dental and veterinary practices, equipment is generally 5- or 7-year property eligible for section 179 (up to $2.5 million, phased out above $4 million) or 100% bonus depreciation for property acquired after January 19, 2025. The deduction starts when the equipment is placed in service, meaning installed and ready for its function, not when it is ordered or paid for. Financing and leasing choices affect who claims the deduction, and accessibility equipment may also qualify for the disabled access credit under section 44 for small practices.
For device manufacturers, design, prototyping and testing work commonly qualifies for the research credit under section 41, and domestic research costs can be deducted immediately under section 174A. The 2.3% medical device excise tax under section 4191 was repealed for sales after December 31, 2019. Founders and investors may exclude gain on qualified small business stock under section 1202, which was expanded for stock issued after July 4, 2025.
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A telecommunications equipment maker won most of its R&D credit, including a large part of the CEO's wages, because its engineers' development work was well documented.
The contrast: credits were denied when the company could not show a process of experimentation.
The medical device excise tax was repealed by the Further Consolidated Appropriations Act, 2020, for sales after 2019.
Depreciation begins when an asset is ready and available for its assigned function. Equipment delivered but not installed by year end generally waits for the next year.
Our approach
Purchases, timing, financing and entity structure.
Invoices, installation dates and research records.
Depreciation, credits and elections on the return.
Support for IRS or state examinations.
Questions
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Yes if it is placed in service that year, using section 179 or 100% bonus depreciation. Ordering or paying in December is not enough if installation happens in January.
It depends on cash flow, financing rates and whether you can use the deduction. Under a true lease the lessor takes the depreciation and you deduct rent; under a financing lease you are treated as the owner.
No. The 2.3% excise tax was repealed for sales after December 31, 2019.
Activities to resolve technical uncertainty in design, including verification and validation testing, often qualify. Purely regulatory paperwork generally does not.
Possibly, under section 1202 if the company is a qualifying C corporation and the stock is held long enough. For stock issued after July 4, 2025, partial exclusions start at three years and the full exclusion at five.
Virginia does not follow federal bonus depreciation, and localities tax business equipment as personal property.
Latest updates
Authorized representatives can now make balance-due, amended return, extension, proposed assessment and federal tax deposit payments for business clients online. Appropriate authorization for the client and tax matter is required.
Source: IRS (IR-2026-134)
For 2027 the joint-return standard deduction rises to $33,200, the estate tax basic exclusion to $15,480,000, the annual gift exclusion to $20,000 and the Section 179 expensing limit to $2,640,000. Our advisors recommend revisiting year-end gifting and equipment purchase plans with these figures in mind.
Source: IRS (IR-2026-133)
All 6,576 nominated census tracts, including 2,594 rural tracts eligible for enhanced benefits, become Opportunity Zones on January 1, 2027 for ten years. Investors with capital gains should review the new map before committing funds.
Source: IRS (IR-2026-132)
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