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Dental practice saves $100,000 by moving into purchased building early

Paresky Flitt & Company, LLP in Wayland, MA recently helped a dental practice in Rhode Island obtain a substantial tax deduction in 2014 for a building that they didn’t actually buy until 2015.  The client acquired $250,000 of brand new equipment but was ineligible for the deduction until they occupied the building and used it for their dental practice.  With the closing scheduled for January 2015, it appeared they would have to wait until 2015 for the equipment write off.

We came up with a simple suggestion, which allowed the deduction to occur in 2014.  Knowing there was no way to accelerate the closing on the sale of the building, we suggested our client move into the building in December 2014.  They agreed with the seller to occupy the space as a tenant at will for the last 10 days of December and until the closing in January.  This allowed them to open the office in December 2014, begin using the equipment, and qualify for the deduction in 2014.  The savings from doing this was approximately $100,000.

We helped this client, and we can help you too.
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Dawn Vayo
PamJam Realty LLC