Can you take a tax deduction if you are producing crowns (CEREC or similar) in your office?

2TheApex:  YES!

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Disclaimer: We are not a source for tax advice nor are we accounting professionals.  Please consult a CPA to be sure this applies to your office and makes financial sense.

Domestic Production Activity Deduction (DPAD) is the production or manufacturing of tangible property within the United States.  Milling crowns in the office is considered by the IRS to be a manufacturing process.  The deduction is 9% of the net income from the CAD/CAM process. This may be worth contacting your accountant if you think it could apply to your practice.  Is the deduction enough to justify the additional paperwork your accountant will need to claim the deduction?

 

 

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