Get expert tax and accounting help!
Call (866) 681-2140
Call (866) 681-2140
A dental practice is taxed on three things at once: chair-side production, the equipment behind it, and the entity that holds it. A preparer who treats it like a personal return manages only the production and leaves the equipment and entity untouched.
Depreciation on the chairs and scanner, the salary an S-corp allows, and the retirement plan a practice can run each reduce the tax you owe, but only if someone sets them up before year-end.
Equipment gives the fastest deduction. A chair, scanner, or cone-beam unit placed in service this year can be written off in full instead of spread across seven.
Dentist tax planning covers the four parts of a practice that affect the tax you owe:
timed and expensed for the year they help most.
sole proprietorship, S-corp, or PLLC taxed as an S-corp, and the salary it requires.
solo 401(k), profit sharing, and cash balance plans that move large sums out of taxable income.
set so the reasonable-compensation rule holds.
We look at the P&L, your equipment, your entity, and your retirement setup, and find where you are overpaying.
We model the entity, the depreciation timing, and the retirement contributions together, since one changes the others.
We set the salary, estimates, and contributions, then adjust as profit comes in.
A preparer who files in April sees the year after it happened. By then the equipment timing is fixed, the election deadline has passed, and the retirement plan can no longer be set up for that year. We hold your practice books and your personal return together, so the plan covers both at once.
Dentists who plan ahead know their tax bill before filing season.
For business owners, make sure that you’re maxing out any type of retirement plan. There’s ones now that will allow you to deduct from your taxes over $70,000. And there’s others that can even be in the hundreds of thousands of dollars. And many people don’t even take a look at that.
Excellent tax preparation and financial planning.
We price by the work involved. A single-location practice cleaning up its entity and depreciation for one year costs less than a multi-site group that wants the salary, estimates, and retirement plan run and adjusted every quarter. We size the job after reading the books and the current return, then quote a number before any work starts.
Each of these has a deadline. Once the year closes, most can no longer be fixed.
You don't have to decide anything before the first call. Send last year's return and a rough P&L, and the review shows what you can still change this tax year, with a number on each. If the math doesn't justify the work, we'll tell you.
Send the practice's rough numbers and entity type, and the reply lists which deductions and elections are still available before year-end. Confidential, reviewed by a professional.
