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Investment Allowance

Published on : 4/3/2013

I have recently noticed increased interest on our chat forums from those of us interested in taking up this apparently now extended opportunity to claim a further 50% investment allowance on top of the standard depreciation tax deductibility we have always had.

This seems to me to be an amazing opportunity for those of us who are considering further investment or expansion as members of an industry seemingly to have suffered very little no impact from the recession with many still growing both their patient numbers and surgery hours.

On my calculations, assuming we are making enough to be paying tax, we actually will realise a significant cash bonus in the first year plus the existing benefit of the depreciation over the next 5 for most equipment investments?

So if I invest in a Sirona Cerec for example at say $190k, do similar numbers to those I recently saw used by someone else weighing up the same question…. $35- per block against say $350- for Lab costs giving me let’s say $300- per crown saving and let’s say I do only ten crowns per month to achieve my $3k per month in lease fees. So that’s my lease covered if I don’t expand that part of my practice offerings at all. So, on top of that I get my further 50% investment allowance? And on top of that, I get my standard depreciation plus the profit my practice makes on these procedures and then if I want to expand or further target this aesthetics area of my practice, well who knows? So, without any expansion, I am actually quite a bit better off, in fact seriously better off financially if I invest in the right technology now…..

Of course, those who know me and my practice would realise that a Cerec is not me nor the type of technology/equipment that would suit the demographics of my practice, however there are a number of other options in regard to technology/equipment I will be looking closely at.

This same principal should and I would say will apply to most technologies/equipment investments any of us can choose to look at- Cost verses Savings/Depreciation/50% gift. Certainly worth very serious consideration I would think?

For the record, Centaur don’t sell Cerecs.

Dr Frank Papadopoulos

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