CAD/CAM Dentistry – Domestic Production Activities Deduction dead But not forgotten!
Although the Domestic Production Activities Deduction has been repealed as of December 31, 2017, that doesn’t mean there isn’t an opportunity for many dentists that own CAD/CAM technology to take advantage of this deduction. The deduction is still available for 2017 tax returns and for those who haven’t taken advantage of DPAD in the past by amending tax returns (2014, 2015 and 2016).
The Domestic Production Actives Deduction allows a ~9% deduction on the retail value of CAD/CAM restorations and other fabricated items. The average annual deduction that we see is around $10,000 and at +39.6% to 45% tax rates, the savings can be around $4,500 a year or an $18,000 tax savings over four years.
If you haven’t taken this deduction or have any question, please reach out to us at info@dentalroiassociates.com
Greig Davis – Dental CPA
gdavis@dentalroiassociates.com