Tax Act encourages business purchases in 2009

In talking with dentists, the awareness level of the opportunity provided by the American Recovery and Reinvestment Act seems to be rather low. The Act provides tax breaks for dental practice owners to create jobs by making it attractive to invest in their practices. However, lower taxes should not be what drives the decision making process. First and foremost, the capital improvements need to make sense from a business and return-on-investment standpoint. There is not much time to complete the project(s) in 2009 and to benefit from the tax breaks afforded by the ARRA. Therefore, dentists should consult with their tax advisors as soon as possible to take full advantage of the provisions the Act provides.