Strategies to Save Taxes for Dental Practice Owners
As with all tax strategies, there are several conditions and caveats. We will make sure these strategies are implemented correctly so that they are audit-proof. Here is a sampling of the strategies that we can put in place for you and your dental practice.
- Form of Entity Selection. Save 15% on your payroll taxes by making certain elections for tax purposes.
- Equipment Purchases. Finance the purchase of new equipment and take a write-off for the entire purchase amount. This is a win-win strategy – even though you have not paid for the equipment in full, you will get a full write-off of the purchase price. A win for cash flows and taxes.
- Self-Rental for Trainings, Meetings and Parties. Write off as much as $28,000 annually and receive this income tax free!
- Hire your Children. Up to $12,400 can be paid to your child tax free. You can use the funds to save for college or for any other purpose.
- Maximize Medical Benefits. Pay for your health insurance using pre-tax dollars. Extend the same benefit to your employees.
- Retirement Plans. Shelter up to $57,000 of your income by implementing a retirement plan for your company. Write-off employer contributions to employee plans. Give your team a great benefit that will keep them with you for the long term.
- Research & Development Tax Credits. Reduce your taxes with credits available to dentists who have a lab onsite, work on new procedures or processes, use new technologies, and other related activities. Credits are worth 6%-8% of qualified costs.
- Health Savings Accounts (HSA). Contribute of to $7,000 annually to an HSA and enjoy a deduction for this amount.