Tax Write-Offs Every Dentist Should Know About

1. Tax Write-Offs Every Dentist Should Know About

2. Dentists have many opportunities to get their hands on significant tax deductions, and with the right help, they can turn tax season into an advantageous period of the year, instead of one they dread. While running their practices, dentists incur a whole host of expenses, many of which are eligible for deductions in tax terms. While guidelines for deductible expenses are provided by the IRS, working with a specialist in dentist tax planning is strongly recommended to help dental practitioners make the most of tax time. Let’s take a closer look at some of the most common dental tax write-offs:

3. Start-up costs Costs associated with the initial set-up of a dental practice can be significant, but many of them, including legal fees and marketing, are tax deductible. If the total of your start-up expenses come below the $50,000 limit, you can write-off as much as $5,000 of them; a specialist dental tax accountant can guide you through the whole list of deductibles. • Dental equipment From buying x-ray machines and chairs, to other essential items of equipment, many of these purchases are deductible under Section 179 of the Tax Cuts and Jobs Act.

4. Employee salaries and benefits Expenses such as employee salaries and benefits make up a large portion of any dental practices expenses, but knowing that these are fully tax deductible, can be of comfort when tax season rolls around. Just be mindful of accurately reporting these expenses, so that you can maximize your deductions. • Technology and office supplies

5. While pens, paper and ink might seem like minor expenses for a dental practice, they’re every bit as important, and just as worthy of claiming as a deductible expense. They must be used within the current tax year to be deductible, however. When it comes to items of tech like patient management software and computers, because these depreciate over time, they can also be helpful when calculating your tax savings. • Contributions to retirement plans

6. A special credit for retirement plans offered by dental practitioners to their employees, helps dentists deduct up to 50%, or $500 of the costs of setting such plans up. It’s worth remembering that by contributing to retirement plans, not only do your employees benefit, but you can also claim deductions that may prove crucial to your bottom line. • Rent and overheads A significant expense for most dentists, renting space to operate out of is a deductible expense, even if you do so out of your home. Overheads such as utilities also qualify as tax write offs for dentists, helping them reduce their tax burden and make the most of their deductions.

7. Insurance and professional fees From malpractice insurance to liability, insurance premiums are essential for all dental practitioners, and fortunately, are fully tax deductible, as are any fees that might be incurred when seeking help from legal services, and others such as consulting and accounting. For a more detailed, deeper dive into tax write-offs for dentists, schedule a consultation with an experienced dental accountant and see how much you could save.