Dental Tax Savings Strategies
Learning Objectives:
Identify the causes of dentists paying more tax than they legally have to.
Quantify the negative effects of these tax overpayments on dental practice.
Explore specific strategies to get rid of tax overpayments legally.
Presentation Summary:
Taxes are the single largest expense for most dentists but can also be the most significant source of savings and financial improvement. However, it is estimated that over 95% of dentists overpay on their taxes due to a need for more understanding of the complex tax system. This presentation aims to provide dentists with strategies for saving money on taxes and improving their financial lives.
The audience will learn how to avoid being one of the 95% dentists who overpay their taxes, potentially saving thousands of dollars each year. They will also discover ways to reduce the costs of working with an accountant and learn about entities and expense planning that can help them legally keep more of their money. Additionally, they will explore tax-advantaged wealth management strategies that can help them retire earlier and with a higher lifetime income.
This presentation is specifically designed for dentists who own their practices and want to take control of their finances, legally reduce their tax burden, and increase their net worth. It is based on decades of experience performing accounting and tax functions for dental practices and includes specific tax-saving strategies used by many dental practices across the country. The presentation also covers key elements of financial statements and strategies for defending against an IRS audit.
Sample documents and plain language explanations are included to help doctors implement tax-saving strategies and increase operational efficiency. These strategies are legal and outlined in the tax code but are often not used by those with less expertise and experience in the dental profession.
Duration: From 1 Hour to a Half Day
Tax strategies for dentists: what this course covers
Most dentists pay more federal and state tax than they need to because their returns are prepared, not planned. This course walks dental practice owners through the legal tax strategies available under current US tax law and shows how to put them in place during the year, not in April.
Who this course is for
- Practice owners with a growing practice and a growing tax bill
- Dentists deciding how to structure a new or acquired practice
- Study clubs and dental meetings that want practical, compliant ideas
Tax strategies covered
- Entity choice: when an S corporation election makes sense and how to set a reasonable salary.
- Qualified business income (QBI) deduction: how it applies to dentists as a specified service business, and the income limits that matter.
- Equipment and technology: Section 179 and bonus depreciation for CBCT, scanners, chairs and buildouts.
- Retirement plans as a tax tool: deducting contributions through 401(k), profit-sharing and cash balance plans.
- Credits most dentists miss: the federal research and development credit and the work opportunity tax credit.
- Hiring family members, accountable plans and home office rules done the right way.
What attendees walk away with
- A checklist of strategies to discuss with their CPA this year
- A clear view of which ideas are legal and which are red flags
- Real examples from dental practices across the US
Related course: Research Tax Credit for Dentists.
Frequently asked questions
What are the best tax strategies for dentists?
The biggest savings usually come from the right entity structure, maximizing retirement plan contributions, timing equipment purchases and claiming credits such as the R&D credit. The right mix depends on income, state and practice stage.
Should a dental practice be an S corporation?
Often, once profit is high enough. An S corporation can reduce self-employment tax on part of the income, but it requires a reasonable salary and payroll. The course explains how to judge the break-even point.
Can dentists take the QBI deduction?
Dentistry is a specified service trade or business, so the deduction phases out above certain income levels. Dentists below or near those levels can often still benefit, and planning can help.
Is this course specific to US tax law?
Yes. It covers federal US tax law and points out where state rules differ. It is educational and not individual tax advice.
How long is the tax strategies course?
From one hour to a half day, as a keynote, workshop or study club session.